Durable Goods Production Climbs to Second Highest Level Ever

Despite the last six months being revised lower, growth in durable goods production continued to accelerate.

(Positive) The durable goods industrial production index was 107.3 in April 2018, which was the second highest level ever behind June 2014. April’s index increased 4.0 percent compared with one year ago. This was the fastest rate of growth since July 2014 and the the sixth time in eight months of faster than 2.0 percent growth. The annual rate of growth has been accelerating since June 2017. Accelerating growth in real durable goods new orders is pointing to even faster growth in durable goods production, which is all very positive for capital equipment orders.

We track industrial production and its leading indicators for a number of industries.

Accelerating Growth: ​automotive, construction materials, custom processors, durable goods, electronics/computers/telecommunications, food/beverage, forming/fabricating (non-auto), hardware, HVAC, industrial motors/hydraulics/mechanical components, metalcutting job shops, oil/gas-field/mining machinery, plastic/rubber products, power generation, primary metals, pumps/valves/plumbing, ship/boat building 

Decelerating Growth: appliances, machinery/equipment, off-road/construction machinery, petrochemical processors, ​wood/paper

Accelerating Contraction: aerospace, furniture, medical, military, printing

Decelerating Contraction: textiles/clothing/leather goods

Reports

World Machine Tool Survey

An independent annual survey that collects statistics from machine tool consuming and producing countries and compares them in real U.S. dollars.

Gardner Business Index

A diffusion index measuring month-to-month changes in activity at durable goods and discrete parts manufacturing facilities.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more that are then projected across the metalworking industry based on plant size.