March Durable Goods Production at All-Time High
According to the Federal Reserve, the durable goods industrial production index was 104.6 in March 2013. This represents a 3.5% increase over the production level of March 2012. This is the third straight month that the index has set an all-time high for that month. In addition, the March index level is the highest ever for any month.
While durable goods production has never been greater, the rate of growth in durable goods production continues to slow. The month-over-month rate of change, now 3.5%, is the slowest rate of growth since February 2010. Consequently, the annual rate of change has slowed each of the last five months, reaching its slowest rate of growth since September 2010.
One of the best leading indicators for durable goods production is capital goods new orders. The annual rate of change in new orders has contracted faster each of the last four months. This trend is likely to continue for at least the next several months. Therefore, we should expect durable goods production to see a slower rate of growth for much of 2013.
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; construction materials; custom processors; food and beverage processing; hardware; HVAC; medical; metalcutting jobs shops; petrochemical processors; plastics and rubber; wood and paper products
Decelerating Growth: aerospace; automotive; durable goods; electronics, computers, and telecommunications; forming and fabricating (non-auto); furniture; industrial motors, hydraulics, and mechanical components; machinery and equipment; military; off-road and construction machinery; oil, gas field, and mining machinery; power generation; pumps, valves, and plumbing products; ship building; textiles, clothing, and leather goods
Accelerating Contraction: primary metals
Decelerating Contraction: printing
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