In December 2019, real cutting tool orders were $188.0 million,  the lowest level for cutting tool orders since December 2017. Compared with one year ago, cutting tool orders contracted -2.6%, which marked the 10^th consecutive month of month-over-month contraction. However, this was the slowest rate of month-over-month contraction since April 2019. The annual rate of change contracted at an accelerating rate for the third month. 

The GBI: Metalworking is a good leading indicator of cutting tool orders and leads cutting tool orders by seven-to-10 months. The annual rate of change in the Index has contracted for 11 straight months, clearly indicating that the annual rate of contraction in cutting tool orders will continue to accelerate. However, the GBI rate of change does appear to be in the initial stages of a turn. If it bottoms in the first quarter of 2020, then it would be expected that the rate of change in cutting tool orders would bottom around the summer of 2020.