U.S. machine tool orders start 2015 with a big, but not unexpected fall in January.
Machine shops and other manufacturers ordered $341.17 million worth of new machine tools during the month, a drop of 32.9% from December, and -4.8% off the total for January 2014.
The falloff of orders is typical as manufacturers look to record capital purchases within the expiring tax year. But the totals do add to a trend of slowing demand exhibited throughout much of the last year.
The index is seen as a way to measure confidence of manufacturing businesses, based on their business volumes and expansion plans.
More about the U.S. Manufacturing Technology Orders report from AMT on American Machinist.