Economic News Blog
Posted by: Steven Kline, Jr. 14. February 2014

Production Increases 2.6% in January 2014

According to the Federal Reserve, the durable goods industrial production index was 102.3 in January 2014. This was an all-time record for the month of January. The month-over-month rate of growth was 2.6%, which was the fourth month in a row of slower growth. Also, the rate of growth in January was the slowest since July 2013 and the second slowest since January 2010. The annual rate of change has grown slightly slower for two months.

One of the best leading indicators for durable goods production is capital goods new orders. Capital goods new orders have contracted two of the last three months. But, in three of the last five months capital goods new orders have grown at least 10% or more. The annual rate of change is still moving in a direction of accelerating growth, which is a positive sign for 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: appliancesfurniture manufacturing; HVACindustrial motors, hydraulics and mechanical componentsmachinery and equipmentmetalcutting job shops; oil, gas-field, and mining machinerypetrochemical processorspower generation; ship building

Decelerating Growth: aerospaceautomotiveconstruction materialscustom processorsdurable goodselectronics, computers, and telecommunicationsfood and beverage processingforming and fabricating (non-auto)hardware; medicalmilitary; plastics and rubber; pumps, valves, and plumbing products; wood and paper products

Accelerating Contraction: off-road and construction machinery

Decelerating Contraction: primary metalsprintingtextiles, clothing and leather goods

 

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