The month-over-month rate of contraction in durable goods capacity utilization slowed for the fourth month, which is a positive sign for manufacturers.
While industrial production data for February was just released and a lot has changed since February, the data might contain a few signs of what industries will do well despite COVID-19.
In the second week of a survey on COVID-19, manfuacturers reported fewer changes to their business with less severe impact on their with the lone exception of travel related activities.
The change in the 10-year Treasury dropped to -0.80%, which is its lowest level since December 2016. And, the actual rate has fallen even farther, more than 100 basis points, in March 2020.
According to a survey conducted the week of March 2, 53% of discrete parts manufacturers have seen no change to their business because of COVID-19. A smaller percent, 39%, have made no adjustments to their business because of the virus.
Based on the January data, durable goods new orders looked to be near a bottom. However, the spread of COVID-19 means that the trends based on the latest data may not reflect the future moves in durable goods new orders.
The spread of COVID-19 across Asia and now more globally is having a significant impact on the world’s economy and the global supply chain. Manufacturers need to be using data to drive their decision making during this challenging period and avoid the temptation to make gut decisions.
In January, real consumer durable goods spending reached an all-time high. The month-over-month rate of growth for durable goods spending was 7.3%.
In January, real disposable income was $15,154 billion, which was an all-time high as is usually the case for real disposable income.
Compared with one year ago, cutting tool orders contracted -2.6%; however, this was the slowest rate of month-over-month contraction since April 2019.
January’s housing permits were 113,000, increasing almost 20% from one year ago.
The Coronavirus, also known as COVID-19 may have a significant impact on the global supply chain serving the Moldmaking community. Moldmaking Technology Magazine and Gardner Intelligence can help Moldmakers stay a step ahead.
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