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More positive outlook for 2011 revealed in latest PTDA Business Index

Chicago, IL -- According to the third quarter results of the Quarterly Business Index released by the Power Transmission Distributors Association (PTDA), PTDA members are projecting 10% growth on top of the 14% average growth expectation for...


Chicago, IL — According to the third quarter results of the Quarterly Business Index released by the Power Transmission Distributors Association (PTDA), PTDA members are projecting 10% growth on top of the 14% average growth expectation for 2010.

In the third quarter, respondents experienced expansion, albeit at a slightly reduced rate than the second quarter. The overall reading for the third quarter was 74.6, compared to 77.0 in the second quarter. A reading above 50 indicates expansion.

A comparative review of distributor and manufacturer results show that manufacturing expanded at a faster pace than distribution, with a reading of 76.6 for manufacturers vs. 71.2 for distributors.

The table below provides an overview of the results and a breakout reading of the PTDA Business Index by distributor and manufacturer.

PTDA  Quarterly Business Index – 3Q2010

All Respondents

Distributors

Manufacturers

Business Activity

82.2

85.2

80.4

New Orders

80.4

86.4

76.8

Employment

61.8

49.4

69.2

Supplier Deliveries

73.8

64

79.8

Inventories

55

55.4

54.7

Prices

81.3

83.5

79.9

Backlog

67

63.2

69.2

Overall PTDA Index

74.6

71.2

76.6

The PTDA Business Index is available at no charge through the PTDA website at www.ptda.org/Index. The full report includes US and Canadian breakout data.

Conducted jointly by PTDA and Cleveland Research Company, the PTDA Quarterly Business Index was 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 market to arrive at an overall index.

A US-based trade association, PTDA represents 185 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 11 other countries. PTDA members also include 181 manufacturers that supply the PT/MC industry.