Metalworking Forecasting Tools
Tools Aerospace Computers & Electronics Construction Machinery Engines, Turbines, & Power
Farm Equipment Machinery Medical Motor Vehciles & Parts Oil Durable Goods
Engines, Turbines, & Power
Text Box: Consumer spending makes up approximately 70% of U.S. GDP. So, when consumer spending picks up or slows down it causes changes in the amount of activity in the economy. When there is more activity in the economy more energy is needed and, consequently, more power generation equipment is required. So, changes in consumer spending drive changes in industrial production of engines, turbines, and power transmission equipment. On average, changes in consumer spending lead changes in industrial production by six months. Current Comment - Real consumer spending is growing faster. In response, enginer, turbine and power industrial production has bottomed and is now contracting more slowly.
Text Box: Industrial production of durable goods leads machine tool unit sales. For the energy/power transmission industry, this seems to be the case as well. Current Comment - Industrial production for engine, turbine and power transmission equipment is still contracting at a very significant rate year over year. Machine tool sales also started to contract at a slower rate but are now contracting more quickly again. Could this improvement have been artifical and related to government spending on alternative energy production?
Sources
Average Hourly Earnings
Consumer Spending
Industrial Production
Machine Tool Sales (EDA)
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
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Modern Machine Shop
Production Machining
Moldmaking Technology
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