Capital spending by machine shops and other manufacturers fell to its lowest level since 2010, especially reflected in orders for machine tools. The Association for Manufacturing Technology — the organization for the machine-tool builders — reported that in April 2020, orders for machine tools fell 26% compared to March 2020, and by 38% year-over-year. Orders in April were $225.8 million.
The American Machinist magazine reported, “monthly new-order totals [for machine tools] began to decline in the second half of last year,” which comports broadly with figures for productive employment.
Douglas Woods, president of AMT asserted, “Data confirms that U.S. industrial production dropped lower than during even the Great Depression.” While that may be overstated, there is a steep decline going on.
