The economic activity forecast from manufacturers of metalformed products has modestly improved, following a previously lowered outlook. There has been an upward trend in shipping levels as metalformers remain optimistic, according to the monthly Business Conditions Report from the Precision Metalforming Association.

The PMA report provides an economic indicator for the next three months of manufacturing, with November’s report sampling 96 metalforming companies in the U.S. and Canada.

The latest report — released Nov. 26 — showed that 23% of manufacturers predict an increase in economic activity (13% in October). Meanwhile, 34% foresee a decrease in activity (37% in October).

Surveyed metalformers also forecast slightly more positive incoming orders, with 30% expecting an increase (24% in October). Additionally, 40% predict no change in order, on par with October last month, while 30% anticipate a decrease (34% in October).

“Metalformers continue to demonstrate resilience despite economic uncertainty, driven in part by the delay in reinstating key tax provisions,” PMA President David Klotz said in the Nov. 27 news release. “These include rolling back the tax on R&D expenditures, restoring the ability to fully deduct those costs and reestablishing 100% bonus depreciation. We urge the incoming Trump Administration and the new Congress to make reinstating these critical tax incentives a top priority if the current Congress does not act during the lame-duck session. Resolving these issues would inject much-needed confidence and encourage strategic investments to strengthen domestic manufacturing — a central theme of both parties during the election campaign.”

The report noted that average daily shipping levels increased in November, with 26% reporting an increase (10% in October). Meanwhile, 41% reported no change in levels (45% in October), while 33% reported a decrease (36% in October).

Metalforming companies reported lead times increasing 5% (9% in October). Additionally, 14% of companies had a portion of their workforce on short time or layoff (12%) in October), while 26% reported expanding their workforce (29% in October).

Find the full November PMA Business Conditions Report here.