The policy stance could, over time, also provide substantial support to the economy indirectly, by mitigating the likely driving forces behind the diminished interest-rate sensitivity of durable goods
Thus the so-called durable goods
monopoly commitment problem may actually occur in non-durable goods industries as well.
The output of durable goods
industries moved up 0.2 percent, with the production of transportation equipment advancing 0.9 percent.
Equation (2) indicates that the durable goods
inventory consists of only the new goods purchased in the previous period, since the used units have expired.
Continuing the pattern of the past several months, the gains in manufacturing output were concentrated in durable goods
. Gains were widespread, with only the lumber, primary metals, and motor vehicles and parts industries declining appreciably; increases were especially strong in computers and electrical machinery.
As in the past few months, much of the strength in manufacturing reflects the increased output of durable goods
; the production of nondurables remains little changed from the end of last year.
When analyzed by industry group, the data show that factory output increased 0.8 percent after a revised 0.2 percent loss in October; the production of durable goods
increased 1.2 percent, while that of nondurable goods rose 0.3 percent.
The production of durable goods
materials fell 1.0 percent, largely because of a drop in parts and materials used primarily by the motor vehicle industry.
Meanwhile, on a quarterly average basis, growth in industrial production slowed from an annual rate of 6.7 percent in the second quarter to 4.4 percent in the third quarter, with the slowdown evident in most major market groups except nondurable consumer goods and durable goods
The drop in the output of durable consumer goods reflected decreases in the output both of automotive products and of other durable goods
. Motor vehicle assemblies fell 0.7 million units from their July level, to 12.6 million units (annual rate).
Excluding do 3 percent gain in utilities production, the index of industrial production rose 0.5 percent, led by sizable gains in business equipment and durable goods
Despite an increase in the production of appliances, the output of consumer durable goods
other than automotive products decreased 0.5 percent, with weakness in furniture and miscellaneous consumer goods.