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PTDA Business Index for 3Q 2012 shows slower continued growth.

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November 29, 2012 - Reading of 50.3 produced by 3Q12 PTDA Business Index represents deceleration from 2Q12 reading of 54.2, indicating power transmission/motion control (PT/MC) industry expanded for tenth consecutive quarter at slower pace compared with 2Q12. Distributors and manufacturers reported decelerated sales growth compared to last quarter. On average, sales rose 5% in 3Q12, down from 7% growth in 2Q12. With average forecast of 6%, PTDA members expect 2013 to be another year of growth.

3Q12 PTDA Business Index Indicates Continued Growth at Slower Pace

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Power Transmission Distributors Association
230 W. Monroe St
Chicago, IL, 60606-4703

Press release date: November 15, 2012

Chicago, Ill. – The 3Q12 PTDA Business Index produced a reading of 50.3, which represents a deceleration from the 2Q12 reading of 54.2. This indicates that the power transmission/motion control (PT/MC) industry expanded for the 10th consecutive quarter at a slower pace compared with 2Q12.

Both distributors and manufacturers reported decelerated sales growth compared with the last quarter. On average, sales rose 5 percent in 3Q12, down from the 7 percent growth seen in 2Q12. Distributor sales growth grew 5 percent in 3Q12 down from 6 percent in 2Q12. Manufacturers also reported decelerated sales growth of 6 percent in 3Q12, compared with 8 percent growth last 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 3Q2012 index and a comparison with 2Q2012. 

PTDA  Quarterly Business Index
2Q2012 3Q2012
Business Activity 50.1 48.2
New Orders 49.2 45.0
Employment 64.2 59.5
Supplier Deliveries 53.2 48.6
Inventories 66.9 65.9
Prices 65.7 71.2
Backlog 54.8 41.8
Overall PTDA Index 54.2 50.3

PTDA members expect 2013 to be another year of growth, with an average forecast of 6 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 at It includes U.S. and Canadian breakout data in addition to historical data. Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index was 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 market to arrive at an overall index.

Founded in 1960, the Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel. A U.S.-based trade association, PTDA represents 171 power transmission/motion control distribution firms that generate more than $11 billion in sales and span just over 3,400 locations in the United States, Canada and eight other countries. PTDA members also include 183 manufacturers that supply the PT/MC industry.

PTDA is dedicated to providing exceptional networking, targeted education, relevant information and leading-edge business tools to help distributors and manufacturers meet marketplace demands competitively and profitably. For more information, call +1.312.516.2100 or visit
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