Published February 8, 2022
The index reported a modest one-month gain but still four points above the level from one year ago.
The Gardner Business Index (GBI) started the new year with a near one-point gain to close at 58.4. The overall uptick was supported by expanding activity in new orders, production and backlog activity. After posting a 10-month low in December, the reading for supply chain performance rose three points, sending it back toward mid-2021 levels. Rising supply chain readings indicate worsening supply chain performance. In contrast, employment and export orders reported declines in activity levels. The decelerating expansion in employment activity has now persisted for a full three months. The latest reading indicated that activity January’s activity was nearly unchanged from a month ago. Lagging all other measures, export order activity contracted further in January than the month prior; it was the only activity component to register contracting activity in the latest readings.
The index increased nearly one point as a result of accelerating expansion in production, new orders and backlog activity.
Data trends in the six-month period ending January 2022 suggest that manufacturers continue to try to do more with less. Production readings over the period in question have remained stable, around a level of 55, while employment activity has slowed and supply chains remain extremely disrupted. This raises an obvious question: How long will it take for manufacturing to reduce backlogs that have expanded at record-setting levels for nearly a year now?
A Note About Gardner Intelligence and the GBI:
Gardner Intelligence does its utmost to provide regular and informative updates on the state of manufacturing, especially given the challenges posed by COVID-19. Gardner cannot thank its survey participants enough for their insights and ongoing support. We hope that you will continue to tell us how your businesses are faring. Only through your participation are we able to assess the current state of the industry and where it may be heading. We encourage our followers and publication subscribers to regularly visit our blog and connect with Gardner Intelligence on LinkedIn and see our YouTube Channel.
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