Economic News Blog
Posted by: Steven Kline, Jr. 19. September 2016

August Durable Goods Production Contracts

(Neutral) The durable goods industrial production index was 107.2 in August 2016. In August, the index contracted 0.1 percent compared with one year ago. This was the second time in four months and third time in six months that the month-over-month rate of change contracted. However, the rates of change have been small. Since March 2015, the one-month rate of change has moved more than plus/minus 1.0 percent in just two months. As a result, the annual rate of change has been 0.0 or 0.1 percent since March 2016. 

The best leading indicators for durable goods production are housing permits, durable goods new orders, and consumer durable goods spending. Housing permits contracted for the fourth month in a row. The one-month rate of change in durable goods new orders has contracted three of the last five months. Although, the annual rate of contraction has generally decelerated since October 2015. Durable goods spending grew at a below average rate the last eight months. 

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: construction materialshardwaremedicaltextiles/clothing/leather goods

Decelerating Growth: appliancesautomotivedurable goodselectronics/computers/telecommunicationsfood/beveragefurniture manufacturingHVACpetrochemical processorsplastic/rubber productsprinting

Accelerating Contraction: custom processorsforming/fabricating (non-auto)industrial motors/hydraulics/mechanical componentsmachinery/equipmentmetalcutting job shopsoil/gas-field/mining machinerypower generationpumps/valves/plumbing productsship building

Decelerating Contraction: aerospacemilitaryoff-road/construction machineryprimary metalswood/paper products

Comments are reviewed by moderators before they appear to ensure they meet Gardner Business Media’s submission guidelines.
blog comments powered by Disqus