Industrial Production Up 2.9% in November

Consumer durable goods industrial production in November was up 2.9% compared to November 2009. The one-month rate of change has slowed considerably in the second half of 2010—to 2.9% from 23.2% in June. As you can see on the chart above, the actual index value (the red line) has leveled off for most of the last 12 months, which is why the 12-month rate of change (the black line) is starting to moderate its rate of growth. Consumer durable goods industrial production will most likely reach its peak rate of annual growth in December. While consumer durable goods industrial production is slowing down, capital goods industrial production is maintaining a fairly strong, stable rate of growth. So, the driver of the economy is shifting from consumer goods to capital goods. The strongest growth is coming from construction machinery, oil, gas, and mining equipment, and general machinery. Meanwhile, the aerospace industry continues to get weaker. For more on these industries and others, go here.