Smith Leonard Survey: New Orders Up 9% in September

December 3, 2018  by Laurie Northington in Business Strategy, Industry   

While this increase is substantial, the survey notes that September 2017 new orders were down 10% when compared to September 2016. However, a 9% increase in September 2018 followed a 9% increase in August 2018 and followed three consecutive months of 5% increases. 56% of the participants reported increased orders in September.

Year-to-date, new orders remain 6% over the same period a year ago. Last year, new orders year-to-date were 4% higher than September 2016. Some 76% of the participants reported year-to-date increases.

The survey also showed, shipments in September 2018 were even with September 2017 with year-to-date shipments up 3%. Shipments for the month were up for some 63% of the participants.

Backlogs fell 4% from May as shipments exceeded new orders. Backlog comparison from June 2016 showed a 6% increase, down from 11% reported in the May to May comparison.

Receivable and inventory levels remained in good shape with both up 5% over September 2017. Both of the comparisons seemed to be in line based on shipment and order levels.