In March, durable goods capacity utilization was 67.8%, which was the first time the rate dropped below 70% since June 2010 and the lowest rate since April 2010. Compared with one year ago, capacity utilization contracted 10.9%. This was the 10^th month in a row and the 11^th of the last 12 months that capacity utilization contracted. Also, this was the fastest rate of month-over-month contraction since October 2009. 

The annual change in durable goods capacity utilization contracted at an accelerating rate for the fifth month in a row, falling to -2.3% from -1.4%. March was the fastest rate of annual contraction since January 2017. As the annual rate of change tends to lead capital equipment consumption by seven-to-10 months, capacity utilization is signaling accelerating contraction in capital equipment spending through at least into the third quarter of 2020.

The GBI: Metalworking backlog index tends to lead the annual rate of change in capacity utilization by seven-to-10 months. The annual rate of contraction in the Backlog index was virtually flat since December 2019. The Backlog index is indicating that the accelerating contraction in durable goods capacity utilization will continue until the summer at least.

Accelerating Growth: 

Decelerating Growth: electronics/computers

Accelerating Contraction: aerospace, automotive, custom processors, durable goods, forming/fabricating (non-auto), furniture, machinery/equipment, petrochemical processors, plastics/rubber products, primary metals, printing, textiles/clothing/leather goods

Decelerating Contraction: construction materials, food/beverage processing, wood/paper products