Production Growth Continues Trend for Fourth Month

November production contracted 1.0% compared with one year ago.

In December, the Index for production of durable goods was 106.0, which was the third lowest level for the index in 2019. Compared with one year ago, the index contracted 1.0%, which was the fourth straight month of contraction.

The annual rate of change, which is easier to correlate with other data points, grew 0.7% this month. However, the annual rate of growth decelerated for the 10th​​​​-straight month. December’s growth rate was the slowest since June 2017, and it is likely to decelerate even more, as the month-over-month rate of growth has been relatively weak the last nine 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, electronics/computers, military, ship/boat building

Decelerating Growth: construction materials, durable goods, forming/fabricating (non-auto), industrial motors/hydraulics/mechanical components, medical, off-road/construction machinery, oil/gas-field/mining machinery, power generation, pumps/valves/plumbing products

Accelerating Contraction: appliances, automotive, custom processors, hardware, HVAC, machinery/equipment, metalcutting job shops, petrochemical processors, plastic/rubber products, primary metals, textiles/clothing/leather goods

Decelerating Contraction: food/beverage processing, furniture, printing, wood/paper products

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.