Metal forming Industry Becomes More Pessimistic Amid Economic and Political Uncertainty

PMA Survey Signals Decline in Economic Outlook and Order Expectations
The latest Business Conditions Report from the Precision Metal forming Association (PMA) reveals a notable increase in pessimism among U.S. metal forming companies. According to the October survey, 37% of manufacturers predict a decrease in economic activity over the next three months, up from 31% in the previous month. This growing sense of caution is reflected in the declining number of companies expecting increased business activity, with only 13% of respondents anticipating growth—down from 15% in September.

Forecast for Orders Weakens as Economic Concerns Rise
The outlook for incoming orders shows a similar trend of diminished expectations. Just 24% of metal formers expect an increase in orders, a slight decrease from 26% last month, while 34% forecast a decline, up from 32% in September. These results suggest that the overall demand for metal forming products may slow down as companies brace for economic challenges.

Political and Economic Factors Fueling Caution
David Klotz, President of PMA, attributed the increasingly cautious outlook to several factors, particularly political uncertainty surrounding the upcoming presidential election and the delayed reinstatement of critical tax incentives by Congress. With these issues unresolved, manufacturers are showing heightened concern about the economic landscape heading into the final quarter of 2024.