Mexican Media Brands
Capacity Utilization Contracts for 7th Month
The GBI Backlog index shows that the contraction in capacity utilization could end later this summer.
#economics
.JPG;width=70;height=70;mode=crop)
Share
(Negative) Durable goods capacity utilization was 75.6 percent in March 2016. The one-month rate of change, which was -0.5 percent in March, contracted for the seventh month in a row. The annual rate of change contracted at an accelerating rate for the third month in a row.
Since June 2008, the Gardner Business Index backlog index has been a very good leading indicator of durable goods capacity utilization. The annual rate of change for our backlog index contracted at a decelerating rate for the second month in a row. The trend in the backlog index shows that the rate of change in capacity utilization could bottom out in the August or September time frame.
We use capacity utilization as a leading indicator for a number of industries, although it is not tracked for as many industries as industrial production. You can see the trends in capacity utilization for a number of industries below.
Accelerating Growth: furniture;
Decelerating Growth: automotive; electronics/computers/telecommunications; printing;
Accelerating Contraction: aerospace; custom processors; durable goods; forming/fabricating (non-auto); machinery/equipment; petrochemical processors; plastics/rubber products; textiles/clothing/leather goods; wood/paper
Decelerating Contraction: construction materials; food/beverage processing; primary metals;
RELATED CONTENT
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.