GBI: Composites Fabricating contracted in April

The Gardner Business Index (GBI): Composites Fabricating closed April at 49.2, following a reading of 50.3 in March. The Index has been rather “touchy” for about nine months now, often bouncing between contraction and expansion. Its movement has not been dramatic, however, generally staying within two points of 50. April’s dip below 50, even if just barely, maintains this trend.

As for GBI components, April presented a mix. New orders, backlog and exports continued to contract, but backlog is one component that actually slowed contraction in April. The other two contracting components were essentially stable.

Production, which had been expanding, declined for the first time since October 2022. Employment, expanding for more than one year now, expanded at a faster rate in April. Growing employment is likely less about meeting increased demand than recovering from COVID-19-driven workforce reductions, both forced and voluntary.

Supplier deliveries have been lengthening at a continually slowing pace for almost a year and a half now, correcting for COVID-caused supply chain chaos. April marks the first month in about a year that supplier deliveries lengthened at a faster pace. The other components suggest that this pace will be sustained.