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September Cutting Tool Orders Highest Since March
The GBI: Metalworking indicated that the annual rate of contraction in cutting tool orders should bottom out near the end of the year.
Change in Real 10-Yr Treasury Highest Since January
The nominal 10-year Treasury rate has been flat since March. And, with slowing inflation, the change in the 10-year Treasury rose to its highest level since January.
Machine Tool Orders Increase in September
Compared with one year ago, machine tool orders increased by 4.6%, which was the first month orders increased since June 2019.
Durable Goods Orders Contracting Slower in September
Consumer durable goods spending is growing extremely fast and indicating a bottom in the rate of contraction in durable goods new orders has occurred.
Income Growth Accelerates in September
September income was 5.5% more than one year ago, which was significantly faster month-over-month growth than the historic average.
September Durable Goods Spending Grows 14.3%
September was the fourth straight month with faster than 11% growth, which was the first time that has happened since the summer of 1999 in the middle of the dot com bubble.
GBI: Metalworking Indicating a Bottom in Cutting Tool Orders Ahead
The GBI: Metalworking seemed to bottom in June indicating that the rate of change in cutting tool orders should bottom in the first quarter of 2021.
Housing Permits Grow 16.8% in September
COVID-19, work-from-home policies and extremely low mortgage rates have created demand for new homes.
Money Supply Growth Accelerates
The monetary base is growing at its fastest rate since 2014 and should lead to increased spending on capital equipment in 2021.
Capacity Utilization Contraction Slowing
The rate of contraction in durable goods capacity utilization should bottom out in the 4th quarter of 2020, according to the Gardner Business Index.
Industrial Production Rebound Pauses in September
The recovery in durable goods production took a slight pause in September, but leading indicators still point to more upside in production.
Real 10-Yr Rate Grinding Slowly Higher
The Federal Reserve has stated it will not pursue negative interest rates. Therefore, the only way for the change to be more negative is for inflation to increase, which is why the Federal Reserve has stated a new policy of average inflation targeting.
