In September 2020, real cutting tool orders were $156.4 million, which was the highest order total since March. Compared with one year ago, cutting tool orders contracted -21.2%. While this was the 19^th consecutive month of month-over-month contraction, it was the slowest rate of month-over-month contraction since March. 

The annual rate of change contracted at an accelerating rate for the 12^th month. The annual rate of contraction was 19.0%, which was the fastest rate of annual contraction since the data was made public. While the annual rate of contraction continued to accelerate, the one-month and three-month rates of change contracted at a slower rate, indicating that a bottom in the annual rate of contraction is near.

The GBI: Metalworking is a good leading indicator of cutting tool orders and leads cutting tool orders by seven to 10 months. In October, the month-over-month rate of change in the index grew at an accelerating rate for the third month in a row. The annual rate of contraction decelerated for the fourth straight month, indicating that the annual rate of contraction in cutting tool orders will bottom near the end of the year.