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 manufacturing; HVAC; industrial motors, hydraulics and mechanical components; machinery and equipment; medical; metalcutting job shops; military; oil, gas-field, and mining machinery; petrochemical processors; power generation; primary metals; printing; pumps, valves, and plumbing products; ship building
Decelerating Growth: aerospace; appliances; automotive; construction materials; custom processors; durable goods; electronics, computers, and telecommunications; food and beverage processing; forming 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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