Durable Goods Production Growth Slowest since January 2014

The durable goods industrial production index was 108.6 in August 2015. In August, the one-month rate of change was 1.2 percent, which was the third month in a row that it was below 2.0 percent. Also, that was the slowest rate of month-over-month growth since January 2014. The annual rate of growth decelerated to 3.4 percent, which was the sixth straight month that the growth rate decelerated. This was the slowest rate of annual growth since September 2014.

The best leading indicators for durable goods production are housing permits, durable goods new orders, and consumer durable goods spending. Housing permits have grown at an accelerating rate recently. The one-month rate of change in durable goods new orders has contracted for six months and the annual rate of change contracted in July for the first time since July 2013. Durable goods spending is still growing at a relatively strong rate and above its historical average. 

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: aerospace; appliances; food/beverage; hardware; printing; textiles/clothing/leather goods

Decelerating Growth: automotive; construction materials; custom processors; durable goods; electronics/computers/telecommunications; forming/fabricating (non-auto); furniture manufacturing; HVAC; industrial motors/hydraulics/mechanical components; machinery/equipment; medical; off-road/construction machinery; petrochemical processors; plastic/rubber products; power generation; ship building; wood/paper products

Accelerating Contraction: metalcutting job shops; oil/gas-field/mining machinery; primary metals; pumps/valves/plumbing products

Decelerating Contraction: military