Economic News Blog
Posted by: Steven Kline, Jr. 16. May 2014

April Durable Goods Production Grows 3.9%

According to the Federal Reserve, the durable goods industrial production index was 108.4 in April 2014. This is the second highest level of production ever (only last month was higher) for the durable goods production index. And, it is the 16th straight month that the durable goods production index has set a record high for the given month. The month-over-month rate of change was 3.9%, which was slightly slower than the last two months but still higher than the historical average. The annual rate of change has held steady at 4.3% the last four months.

One of the best leading indicators for durable goods production is capital goods new orders. Capital goods new orders have increased 12.2% last month compared to one year ago. And, they have grown at a double digit rate five of the last nine months. The annual rate of change continues to grow faster, which is a positive sign for durable goods production. 

We track industrial production and its leading indicators for a number of industries. Click on the links below to see how each industry is faring.

Accelerating Growth: furniture manufacturingHVACindustrial motors, hydraulics and mechanical componentsmachinery and equipment; medical; metalcutting job shopsmilitary; oil, gas-field, and mining machinerypetrochemical processors; power generationprimary metalsprinting; pumps, valves, and plumbing products; ship building

Decelerating Growth: aerospace; appliances; automotive; construction materialscustom processorsdurable goodselectronics, computers, and telecommunicationsfood and beverage processingforming and fabricating (non-auto)hardware; plastics and rubber; wood and paper products

Accelerating Contraction: off-road and construction machinery

Decelerating Contraction: textiles, clothing and leather goods

 

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