The Power Transmission Distributors Association Business Index reading for the fourth quarter was 66.5, down from the 3Q2014 reading of 67.5, indicating slowing but continued positive growth. Manufacturers reported more positive growth in new orders, employment, supplier deliveries and inventories for 4Q2014 than distributors, a notable change from the second and third quarters.
The index reading indicates the rate of change compared with the previous period. Readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.
The entire 4Q14 PTDA Business Index report can be found here. It includes distributor and manufacturer breakout data in addition to historical data. The PTDA Business Index is modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC industry to arrive at an overall index.