Machine Tool Demand Drops in July

Industry groups said the General Motors strike cut July demand for machine tools 18.7%, to $533.2 million from a revised $655.6 million in June. That was down from $655.4 million a year ago, according to the American Machine Tool Distributors’ Assn. and the Assn. for Manufacturing Technology. The groups said orders in the first seven months of 1998 were estimated at $4.6 billion, down 7.7% from a year earlier. Machine tools are used to shape metal in the manufacture of everything from bicycles to aircraft. Demand for them can provide a leading indicator of the pace of manufacturing.