The 2020 Mid-Year Economic Update_long

PTDA Business Index Shows Hastening Growth in 4Q

Eighty-three percent of distributors surveyed expect positive growth in 2013.

The power transmission/motion control industry in the fourth quarter 2012 expanded for the eleventh consecutive quarter, at a slightly faster pace than the prior quarter, according to the PTDA Business Index.

The fourth-quarter index produced a reading of 50.7, a slight increase over last quarter’s reading of 50.3. This indicates that on average, sales rose 6 percent, up from the 5 percent growth seen in the third quarter.

Distributor sales growth was also 6 percent in the fourth quarter, up from 5 percent in the previous quarter. Manufacturers also reported sales growth of 6 percent, flat from the third quarter.

New to this report are trends in 14 end markets where members were asked to rate the strength of each market they serve. Thirteen of the 14 end markets were reported in positive territory. Pulp, paper & board mills production was reported as the weakest category, while oil & gas production was the best performing end market in the fourth quarter.

(Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while 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 table below provides an overview of the results from the 4Q2012 index and a comparison with 3Q2012. 

PTDA  Quarterly Business Index




Business Activity



New Orders






Supplier Deliveries












Overall PTDA Index



PTDA members expect 2013 to be another year of growth, with an average forecast of 7 percent. Notably, 83 percent of distributors and 78 percent of manufacturers surveyed expect positive growth in 2013.

The PTDA Business Index full report is available through PTDA’s website.

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