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: appliances; furniture manufacturing; HVAC; industrial motors, hydraulics and mechanical components; machinery and equipment; metalcutting job shops; oil, gas-field, and mining machinery; petrochemical processors; power generation; ship building
Decelerating Growth: aerospace; automotive; construction materials; custom processors; durable goods; electronics, computers, and telecommunications; food and beverage processing; forming and fabricating (non-auto); hardware; medical; military; plastics and rubber; pumps, valves, and plumbing products; wood and paper products
Accelerating Contraction: off-road and construction machinery
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