Durable Goods Production Second Highest Level Ever

In August, production grew month-over-month for the 33rd consecutive month.

In August, the index for production of durable goods was 110.2, which was its second highest level ever (only June 2019 was higher). Production grew month-over-month for the 33rd consecutive month. However, compared with one year ago, durable goods production grew just 0.6%, which was the second slowest rate of month-over-month growth since November 2016 when production was coming out of a period of contraction. 

In three of the last six months, the durable goods production index was above 110 (it’s only been above 110 one other time). However, the annual rate of growth, which is easier to correlate with other data points, decelerated to 2.3%, down from a peak growth rate of 3.5% in February. August’s growth rate was the slowest since December 2017. The annual rate of growth 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, food/beverage, forming/fabricating (non-auto), hardware, industrial motors/hydraulics/mechanical components, machinery/equipment, metalcutting job shops, off-road/construction machinery, oil/gas-field/mining machinery, petrochemical processors, power generation, primary metals, pumps/valves/plumbing products, ship/boat building

Accelerating Contraction: custom processors, HVAC, 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.