I heard from a former associate who reads this site (hi Pat!) that things are continuing to degrade in the Machine Tool area. As a reminder, here is the latest sales data we posted for May a few weeks ago. New equipment sales were at the lowest level since 2011.
Here is what he (a used Machine Tool dealer) told me today. This is obviously subsequent to the already lame May sales.
“Just an update for you, some disturbing news has leaked out this week. Machine tool builders have put out blow out list to all sales person’s in the USA, not sure if world wide. Mori Seiki list has 600 to 700 machines on it WOW!!! never have i heard of such a huge list by any one Builder. Not sure what they see coming but it can’t be good.”
Mori is a big builder and when the big builders start blowing out it goes right down the food chain. This of course has a relationship with the USD in that the strong currency is pressuring manufacturing even though companies like Mori are Japanese exporters. It’ll be interesting to see how it all plays out. Here’s Uncle Buck challenging the key 98 level, for good measure.
Yellen’s tough talk has accompanied Uncle Buck to the pivot point. Let’s see how tough she is later on if Unc gets impulsive.
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