Aerospace and Packaging
Aerospace industrial production poised for growth in 2015; use of packing to level off.
Aerospace Production Poised for Growth in 2015
Aerospace industrial production grew at a decelerating rate throughout 2013 and into the first half of 2014, but that trend has reversed and it has grown at an accelerating rate since July. Current production levels are virtually at their peak since late 2007 and early 2008, and the growth rate should continue to accelerate. A significant reason for this is that system revenue passenger miles also have grown at an accelerating rate since April 2013. Based on past trends, aerospace industrial production should continue to grow faster throughout 2015.
In September, our aerospace business index, which grew in three of the previous five months, reached its second highest level since September 2012. New orders grew at their fastest rate since January, and backlogs also increased in three of the last five months, which indicates that capacity utilization within the aerospace manufacturing industry should be rising. However, because of the rising dollar, exports are contracting at a significant rate.