Composites industry activity meaningfully slowed contraction in March

GBI: Composites Fabricating index activity has contracted for one year now but shows signs of “moving out and moving on,” indicated by March’s reading of 49.0, which is up from February’s 46.0. While still contracting, it is inching toward 50, which is another step toward expanding (positive) activity. The index value was 49 about one year ago as well, but at that time it was entering accelerated contraction. Now in 2024, this same value is inching toward 50 from a place of slowing contraction. If a metric has to contract, the latter direction is the better way to go!

Key components — new orders, production and backlog — all saw slowed contraction again in March, driving the overall index. Exports contracted at a minimally slowed rate for the first time since August 2023. Employment accelerated contraction for the third month in a row, somewhat contrary to the contraction activity seen in the other components. 

Supplier deliveries lengthened faster for a third month in a row, landing solidly in the expansion zone in March. Business sentiment (not included in GBI calculation) slowed its growth in March, not (yet) causing concern in light of other metrics.