Demand for Machine Tools Fell in February

Demand for U.S.-made machine tools fell slightly in February from the previous month, according to the American Machine Tool Distributors’ Assn. and the Assn. for Manufacturing Technology. Total demand in February dipped 4% to an estimated $562 million from a revised $583 million in January. But it was up 22% from the $461-million estimate for February 1996. The January estimate was revised down from $649 million reported a month ago. Machine tools are used to shape metal in making everything from bicycles to aircraft. Demand for these tools provides a leading indicator of the pace of the nation’s manufacturing sector. By region, the joint report said the Midwest accounted for 41.7% of national demand, followed by 18% in the Central region and 15.6% in the Northeast. The South accounted for 13% and the West 11.7%, it said. Export orders placed with U.S. machine toolmakers totaled 318 units in February, up slightly from 316 units in January, the report said. But they rose sharply from 155 units ordered in February last year. The latest figures are from the ninth U.S. Machine Tool Consumption report, which replaced monthly data on U.S. machine tool orders, shipments and exports issued by the Assn. for Manufacturing Technology.