Durable Goods Spending Grows 8.0% in December

December’s durable goods spending grew at its fastest rate since May 2018.

In December, the month-over-month rate of growth for durable goods spending was 7.9%, which was the fastest rate of growth since May 2018. This was just the second month of faster than average growth since July 2018.

The annual rate of growth accelerated significantly to 4.7%. This was the fastest rate since April 2019. Because the real 10-year Treasury rate declined in 2019, and because of the acceleration in quarterly growth, there should be further accelerating growth in the first quarter of 2020.

Below are key spending categories that lead the most important manufacturing new orders and production indices. Note that all spending categories but appliances moved to accelerating growth. Further, appliances was very close to shifting to accelerating growth.

Accelerating Growth: air transportation services, clothing/footwear, durable goods, electronics, food/beverage, medical care, motor vehicles/parts, other non-durable goods, pleasure boats, total consumer

Decelerating Growth: 

Accelerating Contraction: 

Decelerating Contraction: appliances


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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.