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
-
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.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.