May Production Hits Record Level but Growth Rate Slows
According to the Federal Reserve, the durable goods industrial production index was 102.9 in May 2013. The durable goods production index has set a record high for that month every month in 2013. The index in May was 2.9% higher than it was in May 2012. Despite the record production levels, this was the slowest month-over-month growth rate since December 2009. Consequently, the annual rate of change has slowed each of the last seven months, reaching its slowest rate of growth since August 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 at a relatively constant rate the last three months. Orders could be reaching a bottom, which would be a positive sign for future growth in production levels. In the short term, however, production should continue to grow more slowly.
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.
Decelerating Growth: aerospace; automotive; durable goods; electronics, computers, and telecommunications; food and beverage processing; forming and fabricating (non-auto); furniture; hardware; machinery and equipment; medical; metalcutting job shops; military; off-road and construction machinery; oil, gas field, and mining machinery; pumps, valves, and plumbing products; ship building
Decelerating Contraction: printing
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