Economic News Blog
Posted by: Steven Kline, Jr. 16. March 2016

Durable Goods Production Grows at Fastest Rate in 6 Months

The durable goods industrial production index was 108.0 in February 2016. This was the highets level of production since October. In February, the one-month rate of change was 1.7 percent, which was fastest rate of growth in six months. However, the annual rate of growth decelerated to 1.5 percent, which was the 12th straight month that the growth rate decelerated. This was the slowest rate of annual growth since February 2014.

The best leading indicators for durable goods production are housing permits, durable goods new orders, and consumer durable goods spending. Housing permits have grown at a slightly accelerating rate in recent months. The one-month rate of change in durable goods new orders has contracted for 11 of the last 12 months, but the annual rate of change may have bottomed out. Durable goods spending is still growing at a relatively strong rate and above its historical average. 

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: automotive;  food/beveragehardwaremedicalprinting

Decelerating Growth: aerospaceappliancesconstruction materialscustom processorsdurable goodselectronics/computers/telecommunicationsfurniture manufacturingindustrial motors/hydraulics/mechanical componentsoff-road/construction machinerypetrochemical processorsplastic/rubber productspower generationtextiles/clothing/leather goodswood/paper products

Accelerating Contraction: forming/fabricating (non-auto)HVACmachinery/equipmentmetalcutting job shopsmilitaryoil/gas-field/mining machineryprimary metalsship building

Decelerating Contraction: pumps/valves/plumbing products

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