Machine Tool Orders Still Strong Despite Dip

WASHINGTON — U.S. machine tool orders fell a slight 0.6% in April to $253 million, but continued to post substantial gains over 1987 orders, the industry’s trade association said Sunday.

The National Machine Tool Builders’ Assn. said machine tool orders through April this year were up 85.7% to $1.1 billion from 1987 orders, with foreign and domestic orders posting nearly identical gains.

Last month, the association said machine tool orders through March were up 83.3% from orders through March, 1987.

“1988 continues to be a good year for the machine tool industry,” said James Gray, president of the association. “We are happy American industry is again investing in its future.”

A healthy 83.8% increase in April export orders to $59.55 million helped offset a 12.9% drop in domestic orders to $193.45 million, the association said.

Exports on Rise

U.S. manufacturers are experiencing a boom in export sales in large part because of the lower value of the dollar.

“We are encouraged by the recently announced trade figures and the increases in machine tool exports,” Gray said.

Last week, the Commerce Department said all U.S. exports for the first quarter of 1988 increased 9.8% from the fourth quarter of 1987.

Economists view machine tool orders as an indication of capital investment by manufacturers of durable goods, items that last at least three years such as refrigerators and automobiles. Orders often vary widely from month to month.

“What we are seeing (this month) is a continuation of the same trend of improvement in the machine tool industry, which is benefiting from the strength of the economy,” said Eli Lustgarten, an analyst with Paine Webber.

“Demand for capital goods such as machine tools should continue to hold their own,” he said.

Last month, the association reported a decline of 14.6% to $254.4 million in March machine tool orders from February.

Domestic Orders Ease

April orders for metal cutting tools rose 1.8% to $195.3 million in April, with foreign orders up 175.2% to $48.85 million and domestic orders off 15.9% to $146.45 million, the association said.

The other category of machine tools, metal forming, fell 7.8% in April to $57.7 million, with domestic orders off 1.9% to $47 million and foreign orders down 27% to $10.7 million, the association said.

Shipments of machine tools fell 23.9% to $157.4 million in April.