Released November 17, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info's North American Industrial Project Spending Index fell nearly 17% in October from the same period a year earlier, as spending maintained a slide that began in February with the onset of COVID-19 pandemic.
The spending index measures the value of all active projects in the pipeline for the year on a monthly basis. For October, the index totaled $282.51 billion, down from $340.26 billion reported in October 2019.
Year-over-year project spending increases for October were reported in only three of the 12 industries followed by Industrial Info.
Click on the image at right for a graph detailing the spending index.
In comparison, the data for September showed year-over-year spending increases among six of the 12 industries. For more information, see October 29, 2020, article - North American Project Spending Drop for September Less Severe than Past Months.
But one of the industries that has consistently shown positive spending numbers despite the pandemic is Food & Beverages. Spending for October totaled $19.58 billion, up $3.66 billion, or 23%, from spending in October 2019.
North American capital food and beverage projects currently under construction range from a $500,000 cereal plant upgrade to a $900 million brewery expansion. Warehousing-and-distribution-center projects lead in overall spending for the industry.
Food, beverage and tobacco products was one of the industries that reported strong economic growth last month in the Institute of Supply Management's (ISM) Purchasing Managers Index (PMI). The PMI, which follows 18 industry sectors in the U.S., increased in October, marking the sixth consecutive month of growth. The PMI for October registered 59.3%, up 3.9 percentage points from September.
The food, beverage and tobacco industry increased production due to stores stocking up in preparation for the second wave of COVID-19, a PMI survey respondent said.
One of the heftiest project spending losses in October was reported by the Oil & Gas Production Industry, where investments fell 74% year over year to $7.6 billion. On the positive side, the American Petroleum Institute reported U.S. crude production rebounded to 11.1 million barrels per day in September, while production of natural gas liquids (NGLs) set a September record at 5.1 million BBL/d, up by 2.2% from revised August values.
According to the U.S. Federal Reserve Board's latest Beige Book on economic conditions, released October 21, economic activity increased among most of the 12 reserve districts, "but gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic."
The Federal Reserve Bank of Dallas, Texas, reported that the rig count in Texas, northern Louisiana and southern New Mexico remained near historical lows but increased over the Beige Book reporting period for the first time since the beginning of the year. "Most contacts are confident that oilfield activity has stabilized and begun a long, slow slog toward recovery," it said.
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, widened by 21.28% to $430.9 billion in October from $355.3 billion a year earlier. The spending gap widened in all but three of the 12 industries tracked by Industrial Info.
Also, Industrial Info's August North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $214.8 billion in October, down 27.7% from October 2019. Total investment values fell in all but two industries.
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 spending index measures the value of all active projects in the pipeline for the year on a monthly basis. For October, the index totaled $282.51 billion, down from $340.26 billion reported in October 2019.
Year-over-year project spending increases for October were reported in only three of the 12 industries followed by Industrial Info.
In comparison, the data for September showed year-over-year spending increases among six of the 12 industries. For more information, see October 29, 2020, article - North American Project Spending Drop for September Less Severe than Past Months.
But one of the industries that has consistently shown positive spending numbers despite the pandemic is Food & Beverages. Spending for October totaled $19.58 billion, up $3.66 billion, or 23%, from spending in October 2019.
North American capital food and beverage projects currently under construction range from a $500,000 cereal plant upgrade to a $900 million brewery expansion. Warehousing-and-distribution-center projects lead in overall spending for the industry.
Food, beverage and tobacco products was one of the industries that reported strong economic growth last month in the Institute of Supply Management's (ISM) Purchasing Managers Index (PMI). The PMI, which follows 18 industry sectors in the U.S., increased in October, marking the sixth consecutive month of growth. The PMI for October registered 59.3%, up 3.9 percentage points from September.
The food, beverage and tobacco industry increased production due to stores stocking up in preparation for the second wave of COVID-19, a PMI survey respondent said.
One of the heftiest project spending losses in October was reported by the Oil & Gas Production Industry, where investments fell 74% year over year to $7.6 billion. On the positive side, the American Petroleum Institute reported U.S. crude production rebounded to 11.1 million barrels per day in September, while production of natural gas liquids (NGLs) set a September record at 5.1 million BBL/d, up by 2.2% from revised August values.
According to the U.S. Federal Reserve Board's latest Beige Book on economic conditions, released October 21, economic activity increased among most of the 12 reserve districts, "but gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic."
The Federal Reserve Bank of Dallas, Texas, reported that the rig count in Texas, northern Louisiana and southern New Mexico remained near historical lows but increased over the Beige Book reporting period for the first time since the beginning of the year. "Most contacts are confident that oilfield activity has stabilized and begun a long, slow slog toward recovery," it said.
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, widened by 21.28% to $430.9 billion in October from $355.3 billion a year earlier. The spending gap widened in all but three of the 12 industries tracked by Industrial Info.
Also, Industrial Info's August North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $214.8 billion in October, down 27.7% from October 2019. Total investment values fell in all but two industries.
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.
