Precision machining index reaches 56.6 in September

Precision machining index rises in September despite softer production

Gardner’s Precision Machining Index reached 56.6, with orders, backlog and supplier deliveries supporting a ninth straight month of expansion.

AI Newsroom 2 min readPublished on this site: 14 Oct 2026, 16:45Original publication: 14 Oct 2026, 04:00Updated: 15 Oct 2026, 00:39

Generic precision machining shop floor with CNC equipment, illustrating production activity and supplier lead time pressure

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Three key points

01The Precision Machining Index rose 1.3 points to 56.6 in September, its ninth consecutive month of expansion.
02New orders, backlog and supplier deliveries improved, while exports remained the only component below 50.
03Material prices moved back up to 82.5, and the 12-month outlook stayed strong with a three-month Future Business Index average of 68.6.

Why this matters · AI editorial analysis, not reported fact

For machine shops and contract manufacturers, stronger orders, a rising backlog and longer supplier lead times point to sustained workload and tight capacity. For buyers, firmer material costs and extended delivery times may affect sourcing plans, pricing and scheduling.

Gardner’s Precision Machining Index moved higher in September, reaching 56.6. Because readings above 50 indicate expansion, the latest result extends the sector’s growth streak to nine consecutive months, based on survey data reported by Gardner Intelligence.

The overall gain was supported by a rebound in new orders, which rose by more than two and a half points from the previous month, along with a nearly three-point improvement in backlog. Supplier deliveries also posted a notable increase, jumping almost six points to 66.2, the highest reading since July 2022. In the context of the index, longer delivery times point to busy shops and stretched lead times across the supply chain.

Production moved lower from its August level, but remained firmly in expansion territory at 58.3. Employment edged up, indicating a modest improvement in staffing conditions. Exports were essentially unchanged and remained the only component below the 50 threshold, making them the weakest part of the September reading.

On the cost side, material prices reversed several months of slowing increases and climbed 2.6 points to 82.5. That remains a margin consideration for precision machining businesses. Prices received also increased, but by a smaller amount, rising 1.5 points to 65.2. The combination suggests that demand conditions are still supportive, while input-cost pressure has not disappeared.

Business sentiment for the next 12 months stayed elevated. The three-month average of the Future Business Index eased to 68.6 from 69.9, but still reflected a confident outlook among survey respondents. On a three-month average basis, every major component remained well above its year-ago level, with exports the only category still below 50.

Taken together, September’s data point to a precision machining market that is still expanding even as current production softened from the prior month. For the industry, the mix of stronger orders, a larger backlog and slower supplier deliveries suggests a market that remains active, but one that also faces ongoing capacity and cost pressures.