US May machine tool demand off 36.4 pct from yr ago

Reuters ^ | Sun July 13, 2003 05:58 PM ET | Staff

[arete]

WASHINGTON, July 13 (Reuters) - U.S. machine tool demand fell in May from the year-ago month, and also fell slightly from April, two industry trade groups said in a joint report on Sunday that underlined the sluggishness of the economy.

The American Machine Tool Distributors' Association (AMTDA) and the Association for Manufacturing Technology (AMT) said U.S. May machine tool demand stood at $140.78 million, down 36.4 percent from $221.25 million in May 2002.

May demand was also off 0.8 percent from a revised $141.90 million in April. April demand was revised downward from $169.57 million reported a month ago.

In the first five months of 2003, machine tool demand totaled $697.95 million, down 24.4 percent from $923.50 million in the same 2002 period, the groups said.

"America's investment in modern manufacturing equipment is at one of its lowest points in history," AMT President Albert Moore said in a statement.

The Commerce Department on July 2 revised U.S. May durable goods orders to a 0.4 percent drop from a previously reported 0.3 percent decline.

Machine tools are used to shape metal for such products as car engines, refrigerators and television sets. Demand for these tools can provide a leading indicator of the pace of manufacturing.

The machine tools report is generally based on a survey of about 200 manufacturers, distributors and importers of machine tools that represent 76 percent of the machine tool market.

[arete]

"America's investment in modern manufacturing equipment is at one of its lowest points in history," AMT President Albert Moore said in a statement.

I guess when you don't have any manufacturing, you don't need all those expensive machine tools.

Richard W.

[arete]

FYI

Comments and opinions welcome.

Richard W.

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[oceanview]

exactly right. Its going to zero, they should stop tracking it actually. Just float an article when it goes to zero and be done with it.

[L`enn]

It would be interseting to see China's corresponding report.

[oceanview]

Shh, someone might notice, and you will upset all those freeper free traders.

[AntiGuv]

The glorious second half recovery will make a mockery of such reports...

[ThePythonicCow]

Its going to zero

Why stop there? Maybe if we start unplugging the stuff we have and shipping it overseas at fire sale prices, we can get credit for going negative ;).

[oceanview]

actually, that is already happening. i know of such practices in the semiconductor industry, they just take the US stuff and send it overseas for the new workers to use.

[evaporation-plus]

The glorious second half recovery will make a mockery of such reports... /sarcasm.

That's better?

[AntiGuv]

Anyone who fails to grasp the irony is undeserving of sarcasm tag benefits.. ;^)

[bvw]

An elephant stampede is an elephant stanpede. No elephant wants to be left alone and miserable.

[arete]

Not to worry. Our leaders are firmly in charge and are leading us down the road to prosperity within the framework of a service based economy. More professional girls beach volleyball teams, daytrip bus tours to Atlantic City, and serial refinancing of homes is the future economic engine to real wealth cration for all Americans.

Richard W.

[imawit]

In May I bought a new set of drill bits. First time in about 10yrs.

Guess that didn't help. Oh, wonder if they were made in China ?

[RaceBannon]

Good thing we have NAFTA and GATT

[henderson field]

Hey, I thought when Alan Greenspan cut the interest rates he said it would increase capital expenditures. Am I to believe now that what he really said is that it will decrease capital expeditures? I sure hope he knows what he's doing.

[Starwind]

The glorious second half recovery will make a mockery of such reports...

The economy is like a coiled string.

[VadeRetro]

Man, I'm getting a bad feeling!

[arete]

I sure hope he knows what he's doing.

Humm -- let's see. 13 interest rate cuts each of which was dead bang guranteed to stimulate economic growth within 6 mths. You tell me if Greenspan and all the Wall Street lackeys and shills know what they are doing? We live in a dream world where extreme skateboarding is considered a wise career move. We've come a long way from those dirty old factory jobs. Now that's progress.

Richard W.

[riri]

In my college days, I bartended at a little pub that catered to these type guys. These guys made a decent living, worked long and hard hours and overall were decent good old boys. This is just really shitty.