In July, the index for production of durable goods was 94.5. Compared with one year ago, the index contracted 9.8%, which was the third month in a row that the month-over-month rate of change in the index decelerated and the first month the rate of change contracted less than -10.0% since March. 

The annual rate of change, which is easier to correlate with other data points, contracted 7.4% this month. This was the fifth consecutive month of accelerating contraction. The key leading indicator of production—durable goods new orders—is indicating further contraction in production. However, consumer durable goods spending, which leads durable goods new orders, appeared to be at a bottom and about to start contracting at a slower rate.

We track industrial production and its leading indicators for a number of industries.

Accelerating Growth: 

Decelerating Growth: electronics/computers, military

Accelerating Contraction: aerospace, automotive, construction materials, custom processors, durable goods, food/beverage processing, forming/fabricating (non-auto), furniture, hardware, industrial motors/hydraulics/mechanical components, machinery/equipment, medical, metalcutting job shops, oil/gas-field/mining machinery, off-road/construction machinery, petrochemical processors, plastic/rubber products, power generation, primary metals, printing, pumps/valves/plumbing products, ship/boat building, textiles/clothing/leather goods, wood/paper products

Decelerating Contraction: appliances, HVAC