The economic activity forecast from manufacturers of metalformed products has lowered, following an outlook of stability. There has been a drop in shipping levels as metalformers are more cautious, 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 October’s report sampling 98 metalforming companies in the U.S. and Canada.

The latest report — released Oct. 29 — showed that 37% of manufacturers predict a decrease in economic activity (31% in September). Meanwhile, 13% foresee an increase in activity (15% in September).

Surveyed metalformers also forecast steady incoming orders, with 24% expecting an increase, a similar percentage to September (26%). Additionally, 42% predict no change in orders, the same percentage as last month, while 34% anticipate a decrease (32% in September).

“Metalformers are approaching the next three months with increased caution, partly due to uncertainty surrounding the upcoming presidential election and Congress’s delay in reinstating key tax incentives,” PMA President David Klotz said in the Oct. 29 news release. “That said, I just returned from FABTECH in Orlando, where initial concerns about the impact of two hurricanes were quickly dispelled. Attendance was strong, with 32,000 attendees, and our METALFORM area featured nearly 250 booths. Reports indicated brisk lead generation and even some on-the-spot sales. Overall, the show was very positive and the capital-equipment market continues to be very strong, which is a good sign.”

The report noted that average daily shipping levels declined in October, with 33% reporting a decrease (36% in September). Meanwhile, 57% reported no changes in levels (45% in September), while 10% reported an increase (19% in September).

Metalforming companies reported lead times increased 9% (10% in September). Additionally, 12% of companies had a portion of their workforce on short time or layoff (5% in September), while 29% reported expanding the workforce (34% in September).

Find the full October PMA Business Conditions Report here.