Durable Goods Production Contracts for First Time since 2016

Compared with one year ago, durable goods production contracted 0.4% in September.

In September, the index for production of durable goods was 109.2, which was down 0.4% from one year ago. This ended a streak of 33 consecutive months of growth in the durable goods production index. The annual rate of change, which is easier to correlate with other data points, grew 1.9% this month. However, the annual rate of growth decelerated for the seventh-straight month. September’s growth rate was the slowest since September 2017, and it is likely to decelerate even more, as the month-over-month rate of growth has been relatively weak the last six months. Further, the key leading indicator of production – durable goods new orders – is indicating slower growth in industrial production.

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

Accelerating Growth: aerospace, medical, military

Decelerating Growth: automotive, construction materials, durable goods, electronics/computers/telecommunications, forming/fabricating (non-auto), hardware, industrial motors/hydraulics/mechanical components, machinery/equipment, metalcutting job shops, off-road/construction machinery, oil/gas-field/mining machinery, power generation, primary metals, pumps/valves/plumbing products, ship/boat building

Accelerating Contraction: custom processors, food/beverage, HVAC, petrochemical processors, plastics/rubber products, printing, textiles/clothing/leather goods, wood/paper products

Decelerating Contraction: appliances, furniture

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.