Closing July at 60.8, the Gardner Business Index (GBI), reported its fifth sequential month above 60.0. July’s survey respondents reported slowing expansion in new orders and production activity which fell by 4-points and 2-point respectively. This asymmetrical slowing of activities pushed backlogs lower by more than 5-points, sending it to its lowest reading since February 2021. July’s employment activity reading was in line with recent months’ readings. Hiring activity in 2021 has compared favorably with the readings recorded around the peak of the 2017/2018 industrial business cycle. The reading for supplier deliveries, which gauges order-to-fulfillment timeliness within the supply chain fell slightly for the first time in 2021. The latest reading marks only the second time in the year that the reading for supplier deliveries has not set an all-time high.

Gardner Business Index Ending July 2021, source: Gardner Intelligence

The less than 1-point decline in July’s supplier delivery reading does not necessarily indicate that supply chains are beginning a return to normal. Rather the July reading indicates that only a slightly smaller proportion of respondents reported slowing order-to-fulfillment times as compared to the prior month. For context, the three-month average of supplier delivery readings through July at 81.8 indicates that between 64% and 82% of surveyed respondents reported a month-to-month slowing of supplier deliveries.

A Note About Gardner Intelligence and the GBI:

Gardner Intelligence does its utmost to provide regular and informative updates on the state of manufacturing considering the challenges posed by COVID-19. Gardner cannot thank our survey participants enough for their insights and on-going support. We hope that you will continue to tell us how your businesses are faring. Only through your participation are we able to assess the current state of the industry and where it may be heading. We would encourage our followers and publication subscribers to regularly visit our website blog and connect with Gardner Intelligence on LinkedIn and see our YouTube Channel.