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 Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.