Consumer Goods and Medical
Consumer Goods Production Sees Fastest Growth Since February 1999
The prospects of the consumer goods market for moldmakers have improved since May’s update on this market segment. Spending on molds tends to correlate with industrial production of consumer goods. At the time of the last update, consumer goods production was growing at an annual rate of roughly 2.5 percent. Since that time, the rate has spiked to 3.1 percent, the fastest rate of growth in consumer goods production since February 1999. Based on recent month-over-month growth rates, the annual rate of change should continue to accelerate, perhaps up to 3.5 percent, over the next quarter. This should help to spur production of and spending on molds.
However, the potential growth in consumer goods production may be somewhat limited by the relative weakness in consumer goods spending. The rate of change of consumer spending has remained constant at 2.4 percent since November 2013, and it looks like this may be the fastest rate of growth unless accelerating growth in real disposable income can spur further increases in consumer spending. Therefore, unless the rate of growth in disposable income picks up significantly, real consumer spending growth should remain relatively flat, at best. This would lead to slower growth in consumer goods production and reduced spending on molds for consumer goods.