The Booked Orders Index compiled monthly by the Industrial Truck Association (ITA) shows that orders were at a level 6.8% stronger during the second quarter of 2002 than during the first three months of this year. Further improvement was evident in July, as the orders index rose 3.1% above the June reading. After declining by almost 38% between 2000 and 2001, the estimated value of lift truck sales during the first seven months of 2002 was running a solid 8.9% ahead of the depressed year-ago pace.

The average Booked Orders Index reported by the Conveyor Equipment Manufacturers Association (CEMA) during the second quarter of this year was 21% lower than in the first three months of 2002, and 25% below the second quarter of 2001. Total orders during the first six months of 2002 were worth an estimated 21.3% less than what was booked during January-June of 2001. The index for unit handling equipment orders was off a bit more sharply than that for bulk handling equipment bookings through the first five months of this year.

The U.S. Commerce Department's monthly survey of U.S. manufacturers showed the value of materials handling machinery and equipment shipments to be worth 19.6% less during the first six months of this year than during the first half of 2001. The value of industry shipments for 2001 as a whole trailed the 2000 dollar total by 5.3%, following average annual growth of 5.8% from 1998-2000. However, the rate of shipments decline had clearly bottomed out by early spring, so the industry appears to be in the very early stages of recovery.

The exclusive MMH index of orders declined by a discouraging 7.4% between the first and second quarters of this year, following a gain of 7.6% during the prior quarter. At mid-year 2002, our index was almost 16% lower than where it stood twelve months earlier. There's reason to believe that it's finally bottomed out, however. Declines during two of the past three months have been negligible, -0.2%. So, we're cautiously forecasting slow and steady improvement in orders (and shipments) trends over the balance of 2002 with real industry growth returning by the spring of 2003.