Metalworking Forecasting Tools
Tools Aerospace Computers & Electronics Construction Machinery Engines, Turbines, & Power
Farm Equipment Machinery Medical Motor Vehciles & Parts Oil Durable Goods
Motor Vehicles & Parts
Text Box: As consumers spend more or less on cars and parts, automotive manufacturers adjust their production to meet the new consumer demand. On average consumer spending on vehicles and parts leads industrial production by five months. Current Comment - Consumer spending has started to slow. Consequently, the contraction in motor vehicle and parts industrial production accelerated again in December 2007. Despite the Fed funds rate signaling stronger consumer spending on motor vehicles and parts, consumer spending may slow down because of consumers' concerns about their debt levels.
Text Box: The next two charts give us a feel for changing consumer preferences. The first chart compares the rate of change in consumer spending on domestic new automobiles versus foreign new automobiles. While spending on domestic brands is contracting spending on foreign brands has been growing faster since October 2006. The second chart shows the percentage of spending on domestic and foreign brands.
Sources
Fed Funds Rate
Consumer Spending
Industrial Production
For more information contact Steve Kline, Jr., financial analyst.
513-527-8800
skline2@gardnerweb.com
Links to other Financial Data from Gardner Publications, Inc.
2008 Capital Spending Survey and Forecast Results
Metalworking Business Index
2008 Capital Spending Survey and Forecast Demographic Reports 
Current and past surveys conducted by Gardner Research
Gardner Publications, Inc. publishes the following magazines:
Modern Machine Shop
Production Machining
Moldmaking Technology
Automotive Design & Production