Growth in Durable Goods Spending Continues to Decelerate

Durable goods spending growth was its slowest rate since April 2012 and was approaching its slowest rate of growth since coming out of the Great Recession.

In June, the month-over-month rate of growth for durable goods spending was 4.5%, which was fourth month in a row with faster than 4.0% growth. The moderate boost in the rate of growth was a result of the falling change in the real 10-year Treasury rate. Because the 10-year rate itself has dropped so low, durable goods spending is making up its largest share of all consumer spending ever. However, 4.5% month-over-month growth is below the historical average and one of the slower rates of growth since the first half of 2016. 

The annual rate of growth continued to decelerate, slowing to 4.4% in June. This was the slowest rate of annual rate of growth since April 2012, and the annual rate of growth was decelerating to nearly its slowest rate since coming out of the Great Recession.

Below are key spending categories that lead the most important manufacturing new orders and production indices.

Accelerating Growth: clothing/footwear, electronics, other non-durable goods

Decelerating Growth: air transportation services, durable goods, food/beverage, medical care, motor vehicles/parts, total consumer

Accelerating Contraction: appliances

Decelerating Contraction: pleasure boats


Top Shops

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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.