Composites Index breaks out of slowing growth trend

The GBI: Composites Fabricating index broke out of its three-month trend of slowing growth, increasing to 57.7 in August. The latest readings put the index 1.9% higher than during the same month one year ago. The Gardner Intelligence team’s review of the underlying data for the month of August indicates that the Index was pulled higher by production, supplier deliveries and employment. The Index — calculated as an average — was pulled lower by backlog, new orders and exports. August’s results marked the third consecutive month of accelerating contraction in exports. 

The latest results indicate that production has expanded strongly during the third quarter of 2018. Given the expansion of supplier deliveries and employment in recent months, it is possible that the accelerating replenishment of production inputs is not allowing greater production expansion. The quickening acceleration of production, however, may still not be sufficient to meet total new orders growth as represented by August’s backlogs reading, which was the fourth-highest on record since 2013.

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