The Power Transmission Distributors Association Business Index reading for the first quarter was 50.8, up from the 4Q2015 reading of 35.7, indicating significant growth.
While both distributors and manufacturers reported growth, manufacturer growth for 1Q2016 remains below 50 at 46.6. Business activity indicated an increase nearly double that of the previous quarter, led dominantly by the distributor market, business activity in 1Q2016 increased to 48.3 from 24.6 in the previous quarter.
The index reading indicates the rate of change compared with the previous period. Readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.
The entire 1Q2016 PTDA Business Index report can be found here. It includes distributor and manufacturer breakout data in addition to historical data. The PTDA Business Index is modeled after the widely respected Purchasing Managers Index and tracks change in business activity, new orders, employment, supplier deliveries, inventories, prices and backlog in the PT/MC industry to arrive at an overall index.
