"This was a report full of mixed messages," said Christopher Chidzik, Chief Economist of AMT - The Association For Manufacturing Technology. "The headline number was negative, but this was primarily due to a strong increase in imports. Personal consumption expenditures grew by a healthy 1.8%, driven by growth in services and the consumption of consumer goods.
"The declining consumption of consumer goods is a concerning sign for the manufacturing technology market, as metalworking machines are more heavily involved in the production of these products than consumer goods. On the other hand, growth in transportation services, which are highly dependent on industrial inputs, increased slightly in the first quarter.
"We received above-average orders in the manufacturing technology sector in the first quarter of 2025, as shown by the U.S. Manufacturing Technology Orders Report, which is reflected in the impressive growth of 22.5% in equipment investments. Many of our members end their fiscal year in March, so we typically see a decline in order activity at the end of the first quarter and a drop in April. Depending on how significant this decline is, we can determine how much of these investments is due to orders being pulled forward to avoid expected tariff increases."
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