Press Release Summary:
PTDA Business Index indicated 3Q2011 was the sixth consecutive quarter for business growth among PTDA members, albeit with a reading of 68.1. Compared with reading of 70.2 for 2Q2011, third-quarter results indicate power transmission/motion control industry is expanding at a slower pace than before. PTDA members participating in the Business Index on average continue forecasting 12% growth, the same as from the 2Q outlook.
Original Press Release:
PTDA Business Index Shows Modest Deceleration from 2Q11; Business Still on Upswing
Year-End Expectations Remain Consistently Tempered
Chicago, Ill.- The PTDA Business Index indicated 3Q2011 was the sixth consecutive quarter for business growth among PTDA members, albeit with a reading of 68.1. Compared with a reading of 70.2 for 2Q2011, the recently released third-quarter results indicate the power transmission/motion control industry is expanding at a slower pace than before.
[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 3Q2011 index and a comparison with 2Q2011.
PTDA Quarterly Business Index
Business Activity 74.3 72.3
New Orders 68.2 72.6
Employment 69.3 66.7
Supplier Deliveries 69.0 60.9
Inventories 68.7 70.7
Prices 87.1 89.7
Backlog 71.1 64.7
Overall PTDA Index 70.2 68.1
PTDA members participating in the Business Index on average continue forecasting 12 percent growth, the same as from the 2Q outlook. Distributors' sales rose faster in the third quarter than manufacturers' sales.
The PTDA Business Index full report is available through PTDA's website at www.ptda.org/Index. 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 178 power transmission/motion control distribution firms that generate more than $10 billion in sales and span just over 3,500 locations in North America and 11 other countries. PTDA members also include 180 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 www.ptda.org.