Production Grows Much Faster than Historic Average

In December, durable goods production grew 4.7 percent compared with one year ago.

In December, the index for durable-goods production was at 106.7. While this was the lowest reading since July 2018, December’s index grew 4.7 compared with one year ago. That was the second fastest month-over-month rate of growth since July 2014. It was the third time in five months that the growth rate was faster than 4.0 percent, and December’s rate of growth was 38 percent faster than the historic average month-over-month rate.

The annual rate of growth, which is easier to correlate with other data points, continued to accelerate in November. The rate of growth accelerated for the seventh-straight month, reaching 3.4 percent, the fastest rate of annual growth since May 2013. It was the first month with faster-than-average annual growth since May 2013, as well. The accelerating growth trend will continue for at least the next couple of months, which is a positive sign for capital equipment consumption.

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

Accelerating Growth: automotive, durable goods, electronics/computers/telecommunications, forming/fabricating (non-auto), hardware, industrial motors/hydraulics/mechanical components, military, power generation, primary metals, pumps/valves/plumbing products, ship/boat building, textiles/clothing/leather goods

Decelerating Growth: construction materials, custom processors, food/beverage, HVAC, machinery/equipment, metalcutting job shops, off-road/construction machinery, oil/gas-field/mining machinery, petrochemical processors, plastics/rubber products, wood/paper products

Accelerating Contraction: appliances, printing

Decelerating Contraction: aerospace, furniture, medical

Reports

Top Shops

‘Top Shops’ is a benchmarking and recognition program designed to help shops build their business.

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.

Capital Spending Survey

An annual survey that collects statistics regarding budgeted spending on machine tools, testing equipment, software and more.

Gardner Business Index

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