Released June 18, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's North American Industrial Project Spending Index, which measures the value of active projects in the pipeline for the year, registered a 19.51% increase in May compared with the same month in 2018. The active project value was $570.27 billion, up $93.11 billion from the total in May 2018. The overall increase is the largest monthly year-over-year gain seen so far in 2019.
The Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year in order to get a measure of growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month. The May index registered gains in seven out of the 12 industries tracked by Industrial Info.
Click on the image at right to view the May project spending index by market region.
U.S. industrial production rose 0.4% in May after falling 0.4% in April, the U.S. Federal Reserve said in a monthly statistical release on Friday. The Federal Reserve's indexes for manufacturing and mining gained 0.2% and 0.1%, respectively, in May. The index for utilities climbed 2.1%. At 109.6% of its 2012 average, total industrial production was 2% higher in May than it was a year earlier.
According to the U.S. Federal Reserve's latest Beige Book, a summary of current economic conditions, economic activity expanded at a modest pace overall from April through mid-May, a slight improvement over the previous reporting period.
"Manufacturing reports were generally positive, but some districts noted signs of slowing activity and a more uncertain outlook among contacts," according to June 5 Beige Book, which added: "Manufacturing reports were generally positive, but some districts noted signs of slowing activity and a more uncertain outlook among contacts."
The Institute of Supply Management's (ISM) Report on Business indicated economic activity in the U.S. manufacturing sector expanded in May, and the overall economy grew for the 121st consecutive month; but its Purchasing Managers Index registered its lowest level since October 2016. The ISM said its May findings "reflect continued expanding business strength, but at soft levels consistent with the early-2016 expansion."
Demand expansion continued as did overall consumption, the ISM said. Imports contracted for the second straight month, according to the report.
The U.S. Bureau of Labor Statistics reported U.S. employment edged up by 75,000 jobs in May.
The National Association of Manufacturers noted the May employment numbers included a "sluggish" 3,000 manufacturing jobs created for the month.
"Manufacturing employment has been more sluggish than desired for four straight months, coinciding with weaker demand and production activity and lagging behind the robust pace we experienced last year," NAM Chief Economist Chad Moutray said in a press release, adding: "Indeed, manufacturers created 264,000 net new jobs in 2018, the best pace of employment growth in the sector since 1997. Yet, the sector has added only 13,000 employees since February."
"Manufacturers need certainty," Moutray continued. "Things like ratifying the USMCA [United States-Mexico-Canada Agreement], securing a bilateral trade agreement with China, passing a long-term reauthorization of the Ex-Im Bank and enacting a bipartisan agreement to update our nation's infrastructure are immediate steps policymakers can take that would greatly benefit the industry long into the future."
The Trump administration is hoping for Congressional passage of the USMCA trade pact this summer, according to news media accounts.
Industrial Info's Project Spending Index shows nearly $158.5 billion in North American Industrial Manufacturing spending for May, up nearly $34.2 billion, or 27.5%, from May 2018.
However, Industrial Info's May North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction this year, indicated $27.7 billion in Industrial Manufacturing construction starts, down 25.6% from May 2018.
For information on upcoming manufacturing project starts, see June 13, 2019, article - Northeast, New England to See More Than $2.6 Billion in Third-Quarter Industrial Manufacturing Project Starts and June 11, 2019, article - Southwest Market Region Expects More Than $2.5 Billion in Third-Quarter Industrial Manufacturing Project Starts, and June 17, 2019, article - U.S. Southeast to See Nearly $3.5 Billion in Industrial Manufacturing Project Starts in Third Quarter.
For all 12 industries tracked by Industrial Info, the Construction Starts Index amounted to 6,063 projects worth $106.57 billion for May, down from 6,210 projects valued more than $115.72 billion a year earlier. The total value of the construction starts fell in seven of the 12 industries from a year earlier.
Click the image at right for a graph showing May North American construction starts by industry.
The American Chemistry Council's Chemical Activity Barometer (CAB), rose 0.4% in May, the third monthly gain after several weak months, according to the council.
"Year-earlier comparisons have turned positive in recent months, and while trade tensions, slowing economic growth overseas, and soft economic reports in the U.S. have created uncertainty that has weighed on business investment, the CAB signals gains in U.S. commercial and industrial activity through mid-2019, albeit at a moderate pace," said Kevin Swift, chief economist at the ACC.
Industrial Info's May Project Spending Index for the Chemical Processing Industry amounted to $37.39 billion, down $1.15 billion, or 2.9%, from May 2018. Industrial Info's May Construction Starts Index for the chemical industry amounted to $3.9 billion, down 34.7%. Some substantial chemical industry projects are planned to start construction later this year in Texas and Louisiana. For more information, see June 14, 2019, article - ExxonMobil-SABIC Chemical Project Is One of Several Planned to Start Construction This Year in Texas, Louisiana.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The Project Spending Index is a monthly indicator that compares planned industrial project spending for the current year to the previous year in order to get a measure of growth or contraction in the industrial market. The index provides spending details by industry and market region, including monthly updates that measure the rate of activity from this year to last year during the same month. The May index registered gains in seven out of the 12 industries tracked by Industrial Info.
U.S. industrial production rose 0.4% in May after falling 0.4% in April, the U.S. Federal Reserve said in a monthly statistical release on Friday. The Federal Reserve's indexes for manufacturing and mining gained 0.2% and 0.1%, respectively, in May. The index for utilities climbed 2.1%. At 109.6% of its 2012 average, total industrial production was 2% higher in May than it was a year earlier.
According to the U.S. Federal Reserve's latest Beige Book, a summary of current economic conditions, economic activity expanded at a modest pace overall from April through mid-May, a slight improvement over the previous reporting period.
"Manufacturing reports were generally positive, but some districts noted signs of slowing activity and a more uncertain outlook among contacts," according to June 5 Beige Book, which added: "Manufacturing reports were generally positive, but some districts noted signs of slowing activity and a more uncertain outlook among contacts."
The Institute of Supply Management's (ISM) Report on Business indicated economic activity in the U.S. manufacturing sector expanded in May, and the overall economy grew for the 121st consecutive month; but its Purchasing Managers Index registered its lowest level since October 2016. The ISM said its May findings "reflect continued expanding business strength, but at soft levels consistent with the early-2016 expansion."
Demand expansion continued as did overall consumption, the ISM said. Imports contracted for the second straight month, according to the report.
The U.S. Bureau of Labor Statistics reported U.S. employment edged up by 75,000 jobs in May.
The National Association of Manufacturers noted the May employment numbers included a "sluggish" 3,000 manufacturing jobs created for the month.
"Manufacturing employment has been more sluggish than desired for four straight months, coinciding with weaker demand and production activity and lagging behind the robust pace we experienced last year," NAM Chief Economist Chad Moutray said in a press release, adding: "Indeed, manufacturers created 264,000 net new jobs in 2018, the best pace of employment growth in the sector since 1997. Yet, the sector has added only 13,000 employees since February."
"Manufacturers need certainty," Moutray continued. "Things like ratifying the USMCA [United States-Mexico-Canada Agreement], securing a bilateral trade agreement with China, passing a long-term reauthorization of the Ex-Im Bank and enacting a bipartisan agreement to update our nation's infrastructure are immediate steps policymakers can take that would greatly benefit the industry long into the future."
The Trump administration is hoping for Congressional passage of the USMCA trade pact this summer, according to news media accounts.
Industrial Info's Project Spending Index shows nearly $158.5 billion in North American Industrial Manufacturing spending for May, up nearly $34.2 billion, or 27.5%, from May 2018.
However, Industrial Info's May North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction this year, indicated $27.7 billion in Industrial Manufacturing construction starts, down 25.6% from May 2018.
For information on upcoming manufacturing project starts, see June 13, 2019, article - Northeast, New England to See More Than $2.6 Billion in Third-Quarter Industrial Manufacturing Project Starts and June 11, 2019, article - Southwest Market Region Expects More Than $2.5 Billion in Third-Quarter Industrial Manufacturing Project Starts, and June 17, 2019, article - U.S. Southeast to See Nearly $3.5 Billion in Industrial Manufacturing Project Starts in Third Quarter.
For all 12 industries tracked by Industrial Info, the Construction Starts Index amounted to 6,063 projects worth $106.57 billion for May, down from 6,210 projects valued more than $115.72 billion a year earlier. The total value of the construction starts fell in seven of the 12 industries from a year earlier.
Click the image at right for a graph showing May North American construction starts by industry.The American Chemistry Council's Chemical Activity Barometer (CAB), rose 0.4% in May, the third monthly gain after several weak months, according to the council.
"Year-earlier comparisons have turned positive in recent months, and while trade tensions, slowing economic growth overseas, and soft economic reports in the U.S. have created uncertainty that has weighed on business investment, the CAB signals gains in U.S. commercial and industrial activity through mid-2019, albeit at a moderate pace," said Kevin Swift, chief economist at the ACC.
Industrial Info's May Project Spending Index for the Chemical Processing Industry amounted to $37.39 billion, down $1.15 billion, or 2.9%, from May 2018. Industrial Info's May Construction Starts Index for the chemical industry amounted to $3.9 billion, down 34.7%. Some substantial chemical industry projects are planned to start construction later this year in Texas and Louisiana. For more information, see June 14, 2019, article - ExxonMobil-SABIC Chemical Project Is One of Several Planned to Start Construction This Year in Texas, Louisiana.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
