Gardner Intelligence: Business Index of 61.4 Reflects Expansion in New Orders and Production at Accelerated Rates

The Gardner Business Index (GBI) continued to grow at an accelerated rate for the third month in a row, gaining 1.3 points to close at 61.4 for March 2022. Photo credit: Gardner Intelligence

The Gardner Business Index (GBI) continued to grow at an accelerated rate for the third month in a row, gaining 1.3 points to close at 61.4 for March 2022.

• Continued expansion in new orders and production at accelerated rates drove GBI. March readings are on top of each other, accompanied by backlog which showed a stable rate of expansion in March.
• Following what has been mostly decelerating expansion since October 2021, supply chain activity showed slightly accelerated expansion again in March. While typically a good sign, in current conditions, this reading reflects supply chain disruption and artificially boosts GBI.
• A second month of expansion in employment activity at an accelerated rate may hint at an improving employment picture. Time will tell…
• Exports remain the only contracting reading.

How is the Gardner Business Index created?

Each month Gardner Intelligence surveys the North American durable goods manufacturing facilities on the current state of: New orders, Production, Backlog, Employment, Exports, Supplier Deliveries, Material Prices, Prices Received and Future Business Expectations.

We create a diffusion index for each of the above questions. The total index is an average of the first six sub-indices in the list above.

In addition to the nine factors above, each facility is asked how much they will spend on capital equipment in the next 12 months. We report the results as the average spending per plant. An individual facility’s planned spending is never shared.

Click for more information on the Gardner Business Index, who is surveyed and the data reported.