Chicago, IL — The PTDA Business Index indicated the second quarter of 2011 was the fifth consecutive quarter for business growth among PTDA (Power Transmission Distributors Association) members. With a reading of 70.2, the recently released second quarter results indicate the power transmission/motion control industry is still expanding. However, the rate of expansion has slowed as the 70.2 reading is the lowest the index has been since its inception a year ago.
[Note: The index reading indicates the rate of change compared with the previous period. For example, a reading of 50 indicates no change from the prior period while readings above 50 indicate growth and below 50 indicate contraction. The further the index is above or below 50 suggests a faster or slower rate of change.]
The table below provides an overview of the results from the 2Q2011 index and a comparison to 1Q2011.
PTDA Quarterly Business Index
Overall PTDA Index
PTDA members participating in the Business Index have also lowered their full year outlook for 2011. On average, members are now forecasting 12% growth, down from the 1Q outlook calling for 14% growth.
The PTDA Business Index full report is available through PTDA’s website at www.ptda.org/Index. It includes U.S. and Canadian breakout data in addition to historical 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.
PTDA, a U.S.-based trade association, represents 188 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 187 manufacturers that supply the PT/MC industry. For more information, visit www.ptda.org.