Monthly consumption of U.S manufacturing technology dropped in May, though the total number of orders for machine tools and related equipment was up significantly from the same time last year.

The total value of United States manufacturers’ machine tool and related equipment consumption dropped to $178.34 million in May, down 22 percent from $222.36 million in April, according to the latest U.S. Manufacturing Technology Consumption (USMTC) report, released this week. However, the May total is 58.6 percent higher than the $112.42 million total reported for the same month last year.

Through May, U.S. consumption of manufacturing technology in 2010 totaled $966.63 million, up 52.9 percent compared with the same five-month period in 2009.

Consumption of U.S. manufacturing technology declined from March to April, ending a two-month upswing in orders for machine tools and related equipment, though sales remain significantly above year-ago levels.

“While we would like to see first quarter growth rates continue, we are not surprised by the typical second quarter ebb and flow in capital spending,” Peter Borden, AMTDA president, said in a statement. “We have seen an additional month of substantial orders which helps to confirm that a sustainable recovery is taking place despite the buzz of those forecasting a W-shaped rebound.”

Based on data from American Machine Tool Distributors’ Association (AMTDA) and Association for Manufacturing Technology (AMT) member companies, the USMTC report provides regional and national consumption figures for manufacturing machine tools and related equipment.

On a month-to-month basis, consumption dropped across all regions in May.

Down 35.4 percent from April, the Western U.S. region showed the largest monthly decrease in manufacturing technology consumption, totaling $18.70 million in May. This total was off 11.4 percent from the same month last year. At $118.32 million, 2010 year-to-date consumption for the region was 34.3 percent higher than the same five-month period in 2009.

At $53 million, May manufacturing tech consumption in the Central region was down 28.4 percent from $74.06 million during the previous month but up 152.3 percent over the prior-year level. The $271.62 million value of consumption for the first five months of this year was 82.7 percent higher than the same period in 2009.

Meanwhile, in the Midwest, manufacturing tech consumption in the latest reported month totaled $43.99 million, reflecting a 26.5 percent decrease from April’s total. However, May 2010 consumption was up 56.1 percent over the May 2009 level. So far this year, the Midwest has seen consumption valued at $263.29 million, 45 percent higher than the total for the same period last year.

Manufacturing tech consumption in the Northeast region stood at $33.78 million in May, a 7.2 percent drop from the $36.38 million total in April, but up 18.6 percent from May 2009. With a year-to-date total of $159.16 million, 2010 consumption for the region was up 21.3 percent compared with the same period in 2009.

Totaling $28.88 million, Southern region manufacturing tech consumption in May was 9.7 percent below April’s $31.99 million, but 111.5 percent higher than May 2009′s total. The year-to-date total, $154.24 million, was 86.5 percent above the comparable figure for 2009.

According to the U.S. Department of Commerce this month, new orders for machinery rose from a seasonally adjusted $24.5 billion in April to $26.8 billion in May, a 9.3 percent uptick. Machinery shipments increased 3 percent over April to $24.8 billion in May.

Recent

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Resources

Manufacturing Technology Consumption Up 52.9% in 2010
Association for Manufacturing Technology / American Machine Tool Distributors’ Association, July 12, 2010

Full Report on Manufacturers’ Shipments, Inventories and Orders May 2010
U.S. Department of Commerce, June 3, 2010