Industrial Production up 7.4% in October

Consumer durable goods industrial production in October was up 7.4% compared to October 2009. This ended a string of three consecutive months where the rate of change slowed each month. This could just be a blip due to inventory stocking for the holiday season, or it could be the start of another expansionary trend. The 12-month rate of change is showing the fastest rate of growth since December 1984. This means that the metalworking industry is doing quite well at the moment and that metalworkers should have reason to increase capital equipment expenditures. However, the industrial production index has been fairly flat since June. This indicates that the 12-month rate of change should reach its peak around the end of the first quarter of 2010. The machinery equipment industry just saw its 12-month rate of change move above zero, indicating year-over-year growth, for the first time since September 2008. The one-month rate of change continues to grow at a strong rate, which means the short-term outlook for machinery equipment production is still good. Also, the oil and gas field and mining equipment industry is showing significant signs of life thanks to the Federal Reserve’s QE2 program lifting the prices of commodities around the world. For more information on industrial production, go here.