Released December 30, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--November was not a good month for personal income in the U.S., which fell $221.8 billion (1.1%) from the previous month, while personal consumption expenditures decreased $63.3 billion (0.4%), according to the U.S. Bureau of Economic Analysis. Likewise, last month was not good for overall industrial project spending.
Industrial Info's North American Industrial Project Spending Index remained in negative territory for the 10th consecutive month in November, falling 21.4% from the same period a year earlier.
November's numbers indicated the biggest year-over-year dive into the minus side since June. The spending index measures the value of all active projects in the pipeline for the year on a monthly basis. For November, the index totaled $268.64 billion, down from $341.82 billion reported in November 2019.
Year-over-year project spending increases for November 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.
Among those industries in positive territory was Petroleum Refining (up 4.88%). At $10.68 billion, the industry marked its first year-over-year project spending increase since July.
The American Petroleum Institute (API) reported total refinery throughput in November rose following three consecutive declines, running at 14.4 million barrels per day (BBL/d), with 77.2% capacity utilization.
U.S. petroleum demand returned to 19.1 million BBL/d in November. Demand for motor gasoline decreased seasonally, but distillate demand rose for the fifth consecutive month, and jet fuel deliveries increased along with flight activity. Deliveries of residual fuel oil also increased, along with liquid feedstocks such as naphtha and gasoil.
Lower demand caused by the COVID-19 pandemic has taken its toll on the refining industry, with companies such as Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands) and PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) being forced to close some facilities. For more information, see November 16, 2020, article - EIA: U.S. Refinery Runs Below Average Due to COVID-19, Reduced Demand, October 30, 2020, article - PBF Energy to Idle Paulsboro Refining Units, Looks for More Cost Reductions and November 5, 2020, market brief - Shell to Shut Down Refinery in Convent, Louisiana, Starting This Month.
Industrial Info is tracking more than 60 U.S. refining projects, worth $5.7 billion, that have been delayed or otherwise impacted by COVID-19. Click here for a list. For related information, see December 11, 2020, article - U.S. Refiners Plot $900 Million in First-Quarter Maintenance Amid Demand Struggles.
On the other hand, the Institute of Supply Management's (ISM) Purchasing Managers Index (PMI), which follows 18 industry sectors in the U.S, indicated the overall economy notched a seventh consecutive month of growth in November. However, the PMI, which registered 57.5% last month, was down 1.8 percentage points from the October reading. While manufacturing performed well last month, there was a slowdown as "labor market difficulties, both current and anticipated [...] will continue to dampen the manufacturing economy until the coronavirus (COVID-19) crisis ends," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in a press release.
Industrial Info's Project Spending Index indicates that the Industrial Manufacturing Industry, which covers a wide range of sectors, saw an 18.28% drop in North American spending last month. Spending fell to $74.35 billion from $90.98 billion a year earlier. However, the National Association of Manufacturers' (NAM) fourth-quarter outlook survey shows a rebound optimism since COVID-19 disrupted business in the spring. In the survey, 74.2% of the respondents said they were either somewhat or very positive about the outlook for their company. This compares with readings of 33.9% and 66% in the second and third quarters of 2020. Still, manufacturing production remains 3.7% below the level seen in February, according to the association.
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 25.74% to $444.86 billion in November from $353.79 billion a year earlier. The spending gap grew in all but one of the 12 industries tracked by Industrial Info.
Click on the image at right for the November Spending Gap Index.
Also, Industrial Info's North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $215.2 billion in November, down 27.2% from November 2019. Total investment values fell in all but three industries.
Click on the image at right for the November Construction Starts Index.
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.
Industrial Info's North American Industrial Project Spending Index remained in negative territory for the 10th consecutive month in November, falling 21.4% from the same period a year earlier.
November's numbers indicated the biggest year-over-year dive into the minus side since June. The spending index measures the value of all active projects in the pipeline for the year on a monthly basis. For November, the index totaled $268.64 billion, down from $341.82 billion reported in November 2019.
Year-over-year project spending increases for November were reported in only three of the 12 industries followed by Industrial Info.
Among those industries in positive territory was Petroleum Refining (up 4.88%). At $10.68 billion, the industry marked its first year-over-year project spending increase since July.
The American Petroleum Institute (API) reported total refinery throughput in November rose following three consecutive declines, running at 14.4 million barrels per day (BBL/d), with 77.2% capacity utilization.
U.S. petroleum demand returned to 19.1 million BBL/d in November. Demand for motor gasoline decreased seasonally, but distillate demand rose for the fifth consecutive month, and jet fuel deliveries increased along with flight activity. Deliveries of residual fuel oil also increased, along with liquid feedstocks such as naphtha and gasoil.
Lower demand caused by the COVID-19 pandemic has taken its toll on the refining industry, with companies such as Royal Dutch Shell (NYSE:RDS-A) (The Hague, Netherlands) and PBF Energy Incorporated (NYSE:PBF) (Parsippany, New Jersey) being forced to close some facilities. For more information, see November 16, 2020, article - EIA: U.S. Refinery Runs Below Average Due to COVID-19, Reduced Demand, October 30, 2020, article - PBF Energy to Idle Paulsboro Refining Units, Looks for More Cost Reductions and November 5, 2020, market brief - Shell to Shut Down Refinery in Convent, Louisiana, Starting This Month.
Industrial Info is tracking more than 60 U.S. refining projects, worth $5.7 billion, that have been delayed or otherwise impacted by COVID-19. Click here for a list. For related information, see December 11, 2020, article - U.S. Refiners Plot $900 Million in First-Quarter Maintenance Amid Demand Struggles.
On the other hand, the Institute of Supply Management's (ISM) Purchasing Managers Index (PMI), which follows 18 industry sectors in the U.S, indicated the overall economy notched a seventh consecutive month of growth in November. However, the PMI, which registered 57.5% last month, was down 1.8 percentage points from the October reading. While manufacturing performed well last month, there was a slowdown as "labor market difficulties, both current and anticipated [...] will continue to dampen the manufacturing economy until the coronavirus (COVID-19) crisis ends," said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee, in a press release.
Industrial Info's Project Spending Index indicates that the Industrial Manufacturing Industry, which covers a wide range of sectors, saw an 18.28% drop in North American spending last month. Spending fell to $74.35 billion from $90.98 billion a year earlier. However, the National Association of Manufacturers' (NAM) fourth-quarter outlook survey shows a rebound optimism since COVID-19 disrupted business in the spring. In the survey, 74.2% of the respondents said they were either somewhat or very positive about the outlook for their company. This compares with readings of 33.9% and 66% in the second and third quarters of 2020. Still, manufacturing production remains 3.7% below the level seen in February, according to the association.
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 25.74% to $444.86 billion in November from $353.79 billion a year earlier. The spending gap grew in all but one of the 12 industries tracked by Industrial Info.
Also, Industrial Info's North American Construction Starts Index, which measures the amount of project activity that has been funded and started construction for the year, amounted to $215.2 billion in November, down 27.2% from November 2019. Total investment values fell in all but three 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.
