Durable Goods Production Growth Flat

(Negative) The durable goods industrial production index was 106.3 in May 2016. The one-month rate of change, -0.3 percent, contracted for the second time in three months and and the fourth time in seven months. It has not been more than +/- 1.0 percent since April 2015. The annual rate of change fell to 0.0 percent, which was the first time production had not grown since August 2010. 

The best leading indicators for durable goods production are housing permits, durable goods new orders, and consumer durable goods spending. In April, housing permits grew at their slowest rate since October. The one-month rate of change in durable goods new orders has grown two of the last three months. So, the annual rate of change may have bottomed out. Durable goods spending is now growing at a below average rate. 

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: construction materials; electronics/computers/telecommunications; food/beverage; medical

Decelerating Growth: appliances; automotive; custom processors; durable goods;  furniture manufacturing; HVAC; petrochemical processors; plastic/rubber products; printing

Accelerating Contraction: forming/fabricating (non-auto); hardware; industrial motors/hydraulics/mechanical components; machinery/equipment; metalcutting job shops; off-road/construction machinery; oil/gas-field/mining machinery; power generation; pumps/valves/plumbing products; textiles/clothing/leather goods; wood/paper products

Decelerating Contraction: aerospace; military; primary metals; ship building