Durable Goods Production Hits All-Time High in June
According to the Federal Reserve, the durable goods industrial production index was 112.8 in June 2014. This is the highest level of production ever (only last month was higher) for the durable goods production index. In fact, the four highest readings ever for the durable goods index have come in the last four months. June was the 17th 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 5.4%, which was the third fastest rate of month-over-month growth since December 2012. The annual rate of change accelerated slightly to 4.5%. The annual rate of growth has been accelerating since February 2014.
One of the best leading indicators for durable goods production is capital goods new orders. Capital goods new orders decreased 3.8% in May compared to one year ago. However, the annual rate of change is still on an accelerating growth trend. This is a positive signal for further acceleration in the growth of 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: appliances; durable goods; forming/fabricating (non-auto); furniture manufacturing; HVAC; industrial motors/hydraulics/mechanical components; machinery/equipment; medical; metalcutting job shops; off-road construction machinery; oil/gas-field/mining machinery; petrochemical processors; plastic/rubber products; power generation; primary metals; printing; pumps/valves/plumbing products; ship building
Accelerating Contraction: hardware
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