Released February 20, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's January North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $29.72 billion in January, up 76.3% from a year earlier. Total investment values rose in nine of the 12 industries tracked by Industrial Info.
The Construction Starts Index compares planned industrial project spending for the current year with 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.
Click on the item at right for a graph of the Construction Starts Index.
The index serves as a good barometer of what's to come during the year, said Industrial Info's Executive Vice President Michael Bergen during the 2020 Industrial Market Outlook on January 23 in Houston, Texas.
Bergen said strong spending gains are likely in 2020 for the Power, Chemical Processing and consumer-driven industries.
For the Power Industry, Bergen said, "We have seen this big shift in clean energy; capital spending that has displaced what we would typically see in coal and nuclear. Natural gas is starting to diminish because we've put in a lot of capacity to replace coal that has shut down, and nuclear."
For related information, see January 27, 2020, article - Houston Outlook: Investments in New-Build Renewable Energy Expected to Outstrip Gas-Fired Generation.
Power project spending was among the heavy lifters for January's Construction Starts Index, totaling more than $8.5 billion, up 158% from a year earlier. The boost was largely due to Canada's contribution, which rose to more than $4.9 billion. For related information, see December 31, 2019, article - Canada's $12 Billion of First-Quarter Power-Generation Kickoffs Show Broadening Range of Fuels.
Industrial Manufacturing also saw strong gains, with a total of $9.56 billion across the U.S., Canada and Mexico.
In January, the Institute for Supply Management's (ISM) Purchasing Managers Index (PMI) for the U.S. expanded for the first time since July 2019. The PMI was 50.9%, up from 47.6% in December. A number below 50% represents a contraction in the industry. The PMI covers 18 industry sectors.
"Global trade remains a cross-industry issue, but many respondents were positive for the first time in several months, said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee, in a press release. "Overall, sentiment this month is moderately positive regarding near-term growth," he continued.
Meanwhile, Industrial Info's North American Industrial Project Spending Index, which measures the value of all active projects in the pipeline for the year, registered a 1.25% year-on-year gain in January, totaling $685.6 billion. Much of the gain can be traced to increases in Metals & Minerals project investments. For related information, see December 13, 2019, article - U.S. Metals & Minerals Industry Plans $1 Billion in Maintenance Spending in First-Half 2020.
Eight of the 12 industries tracked by Industrial Info registered year-on-year spending gains in January.
However, the North American Spending Gap Index, which measures the amount of fallout from projects that have been cancelled, placed on hold or moved to another year, also rose, totaling $27.8 billion, compared with $18.5 billion a year earlier.
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 Construction Starts Index compares planned industrial project spending for the current year with 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 index serves as a good barometer of what's to come during the year, said Industrial Info's Executive Vice President Michael Bergen during the 2020 Industrial Market Outlook on January 23 in Houston, Texas.
Bergen said strong spending gains are likely in 2020 for the Power, Chemical Processing and consumer-driven industries.
For the Power Industry, Bergen said, "We have seen this big shift in clean energy; capital spending that has displaced what we would typically see in coal and nuclear. Natural gas is starting to diminish because we've put in a lot of capacity to replace coal that has shut down, and nuclear."
For related information, see January 27, 2020, article - Houston Outlook: Investments in New-Build Renewable Energy Expected to Outstrip Gas-Fired Generation.
Power project spending was among the heavy lifters for January's Construction Starts Index, totaling more than $8.5 billion, up 158% from a year earlier. The boost was largely due to Canada's contribution, which rose to more than $4.9 billion. For related information, see December 31, 2019, article - Canada's $12 Billion of First-Quarter Power-Generation Kickoffs Show Broadening Range of Fuels.
Industrial Manufacturing also saw strong gains, with a total of $9.56 billion across the U.S., Canada and Mexico.
In January, the Institute for Supply Management's (ISM) Purchasing Managers Index (PMI) for the U.S. expanded for the first time since July 2019. The PMI was 50.9%, up from 47.6% in December. A number below 50% represents a contraction in the industry. The PMI covers 18 industry sectors.
"Global trade remains a cross-industry issue, but many respondents were positive for the first time in several months, said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee, in a press release. "Overall, sentiment this month is moderately positive regarding near-term growth," he continued.
Meanwhile, Industrial Info's North American Industrial Project Spending Index, which measures the value of all active projects in the pipeline for the year, registered a 1.25% year-on-year gain in January, totaling $685.6 billion. Much of the gain can be traced to increases in Metals & Minerals project investments. For related information, see December 13, 2019, article - U.S. Metals & Minerals Industry Plans $1 Billion in Maintenance Spending in First-Half 2020.
Eight of the 12 industries tracked by Industrial Info registered year-on-year spending gains in January.
However, the North American Spending Gap Index, which measures the amount of fallout from projects that have been cancelled, placed on hold or moved to another year, also rose, totaling $27.8 billion, compared with $18.5 billion a year earlier.
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.
