Durable Goods Production Reaches Highest Level Ever
According to the Federal Reserve, the durable goods industrial production index was 110.2 in March 2014. This is the highest level ever (by about 3%) for the durable goods production index. And, it is the 15th straight month that the durable goods production index has set a record high for the given month. The month-over-month rate of change reached 4.7%, having accelerated its rate of growth each of the alst two months. This is the fourth fastest rate of growth since January 2013. The annual rate of change has held steady at 4.3% the last three months.
One of the best leading indicators for durable goods production is capital goods new orders. Capital goods new orders have contracted the last three months compared to the same month one year ago. The annual rate of change decelerated last month and looks like it will continue to do so over the next couple of months. This indicates that durable goods production is likely to continue to grow at a slower rate in 2014 despite the index setting record highs every month.
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; automotive; furniture manufacturing; HVAC; industrial motors, hydraulics and mechanical components; machinery and equipment; metalcutting job shops; military; petrochemical processors; plastics and rubber; power generation; primary metals; printing; ship building
Decelerating Growth: aerospace; construction materials; custom processors; durable goods; electronics, computers, and telecommunications; food and beverage processing; forming and fabricating (non-auto); hardware; medical; oil, gas-field, and mining machinery; pumps, valves, and plumbing products; wood and paper products
Accelerating Contraction: off-road and construction machinery
Decelerating Contraction: textiles, clothing and leather goods
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