Economic News Blog
Posted by: Steven Kline, Jr. 18. November 2013

Production Grows 5.6% in October 2013

According to the Federal Reserve, the durable goods industrial production index was 106.0 in October 2013. This was an all-time record for the month of October. In addition to reaching its second highest level ever, the month-over-month rate of growth increased to 5.6%, which is the fastest rate of growth since November 2012. The annual rate of change accelerated to 4.0%. This is the first month of acceleration in the annual rate of change since August 2012. It looks like the annual rate of change should continue to grow faster in the upcoming months, which would be a positive sign for capital equipment sales.

One of the best leading indicators for durable goods production is capital goods new orders. Month-over-month capital goods new orders have grown faster five of the last six months. And, the annual rate of change has grown faster three of the last four months. This is an indication that we could see accelerating growth in durable goods production in 2014.

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: appliancesconstruction materialscustom processors; durable goods; electronics, computers, and telecommunicationsfurniture manufacturingHVAC; machinery and equipment; medical; oil, gas field, and mining machinery; petrochemical processorsplastics and rubbership buildingwood and paper products

Decelerating Growth: aerospaceautomotive; food and beverage processingforming and fabricating (non-auto)hardware; metalcutting job shopsmilitaryoff-road and construction machinery; pumps, valves, and plumbing products

Accelerating Contraction: textiles, clothing, and leather goods

Decelerating Contraction: industrial motors, hydraulics, and mechanical components; power generationprimary metalsprinting

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