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: appliances; construction materials; custom processors; durable goods; electronics, computers, and telecommunications; furniture manufacturing; HVAC; machinery and equipment; medical; oil, gas field, and mining machinery; petrochemical processors; plastics and rubber; ship building; wood and paper products
Decelerating Growth: aerospace; automotive; food and beverage processing; forming and fabricating (non-auto); hardware; metalcutting job shops; military; off-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 generation; primary metals; printing
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