While U.S. cutting tool consumption in April fell by nearly 16% after a first-quarter spike, market indicators remain positive with growth expected later in the year, according to two trade associations representing the production and distribution of cutting tools.

U.S. cutting tool consumption totaled $190 million in April, a 15.8% drop from March’s $225.6 million but a rise of 7.5% from the $176.7 million reported for April 2022, according to the U.S. Cutting Tool Institute and The Association For Manufacturing Technology. With a year-to-date total of $809 million, 2023 is up 15.2% when compared to the same time period in 2022.

“There is a consensus that cutting tool inventories are higher within the distribution segment, which may indicate a short-term inventory burn followed by a possible uptick in renewed buying,” USCTI President  Jeff Major said in a June 23 news release.

Mark Killion, Director of U.S. industries at Oxford Economics, said demand from durable goods manufacturers has supported shipments over the past year but is now expected to “turn weaker in coming months, in line with expectations for a shallow recession.”

The total cutting tool consumption is calculated through those reported by companies participating in the Cutting Tool Market Report collaboration, which USCTI and AMT say represents the majority of the U.S. market for cutting tools.