Industrial Production Grows Faster – Up 5.3%
The consumer durable goods industrial production index was 91.8 in November 2012. While this is the lowest value for the index since July 2012, industrial production was 5.3% more than it was in November 2011. The month-over-month growth rate in November was higher than the previous two months, which helped keep the annual rate of growth virtually flat. These are good indications that the metalworking industry remains strong and that capital spending should remain robust in 2013.
A good leading indicator for consumer durable goods industrial production is consumer durable goods spending. Real consumer durable goods spending was at its second highest level ever in October. The month-over-month rate of change was at its historical average in October and the annual rate of change continues to grow. Trends in spending seem to indicate that there will be faster growth in industrial production in early 2013.
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