Composites Index Rebounds as Expansion Streak Hits Eight Months

The Composites Fabricating Index rose to a reading of 55.9 in August, its eighth straight month of expansion. Source (All Images) | GROW Industrial Intelligence

The Gardner Business Index (GBI) is an indicator of the current state of composites fabricating considering survey responses regarding new orders, production, backlog, employment, exports and supplier deliveries. Over 50 is expansion. Under 50 is contraction.

The index rebounded in August, rising nearly a 1.5 points to a reading of 55.9. The advance marks its eighth consecutive month of expansion. The rebound was powered by the composite market’s core drivers: production surged more than 8 points to 64.6 and new orders jumped 7 points to 60.9, recovering the ground both had lost in July. Backlog firmed up as well, while employment slipped to the 50.0 break-even line and exports eased to 45.3, extending its stay below the expansion threshold. Material prices continued to retreat, easing to 77, the lowest reading in the series and a clear slowing of the rising cost pressure on fabricators. Prices received climbed to 67.2, pointing to firmer pricing power as input costs fell.

Optimism strengthened sharply. The Future Business Index rose to a 3-month average of 72.0, up from 69.1 and the highest reading for the index since June 2021.

On a 3-month average basis, five of six components indicate expansion and all six are exceeding their year-ago results.

Reading the scorecard

The GBI Components Scorecard reports the monthly change rate of primary composites market factors contributing to the overall monthly index reading.

Color indicates where a component value falls relative to 50 for the current month. Green indicates expansion; red indicates contraction.

Shade indicates a value’s distance from 50; the darker the shade, the further from 50.

Direction indicates a value’s change versus the previous time period. Pointing up is always better.

The 3-month average for the Future Business Index rose to 72.0 in August, its strongest level since June 2021.

The GBI Future Business Index is an indicator of the future state of the composites fabrication market industry respondents regarding their opinion of future business conditions for the next 12 months. Over 50 is expansion and under 50 is contraction.

Find the latest composites fabrication market research and reporting at GardnerIntelligence.com.