Metalworking Forecasting Tools
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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 - If real consumer spending has entered into a period of decelerating growth, then engine, turbine and power transmision industrial production will most likely continue in its accelerating contraction.
Sources
Average Hourly Earnings
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
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