Released January 23, 2020 | SUGAR LAND
en
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 14.28% year-on-year gain in December. Much of the $41.36 billion gain can be traced to big jumps in Oil & Gas Production and Power Industry project investments.
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 year to year during the same month.
Click on the image at right for a chart showing the North American Industrial Project Index results for December by industry.
The active project value in December was $330.84 billion, up from $289.49 billion in December 2018.
The 14.28% gain seen last month compares with an increase of 24.97% ($57.84 billion) recorded for December 2018. With the exception of August, the percentage gains reported for each month of 2019 lagged those of 2018.
Seven of the 12 industries tracked by Industrial Info registered year-on-year spending gains in December.
One of the largest gains last month was seen by Oil & Gas Production Industry, which registered a $17.79 billion year-on-year, or 71.56%, increase in project spending.
The U.S. Energy Information Administration (EIA) estimates that annual average U.S. crude oil production reached a new record of 12.2 million barrels per day (BBL/d) in 2019, up 1.3 million BBL/d from 2018. The EIA forecasts U.S. crude oil production to average 13.3 million BBL/d in 2020 and 13.7 million BBL/d in 2021. More production from the Lower 48 states' onshore regions, especially the Permian region, is driving the forecast increase.
The EIA estimates that U.S. liquefied natural gas (LNG) exports averaged 5 billion cubic feet per day (Bcf/d) in 2019. It expects LNG exports will increase to 6.5 Bcf/d in 2020 and 7.7 Bcf/d in 2021. U.S. LNG export capacity is expected to reach 8.9 Bcf/d by the end of 2020.
Meanwhile, the Power Industry saw a $27.58 billion, or 51.08%, jump in project spending last month from a year earlier.
For this year, wind and solar power are expected to contribute the largest amount of new capacity additions in the U.S. power mix. The EIA expects about 42 gigawatts (GW) of new power to be added, with wind contributing 44% of this and solar 32%. For more information, see January 15, 2020, article - EIA: Wind, Solar to Lead U.S. Power Capacity Additions in 2020.
For December, the Institute for Supply Management's (ISM) manufacturing Purchasing Managers Index (PMI) was 47.2%, down from 48.1% in November, marking the fifth straight month of contractions. A number below 50% represents a contraction in the industry.
The PMI covers 18 industries, ranging from food, beverage and tobacco products to chemical and paper products.
"Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the phase-one trade agreement between the U.S. and China. Among the six big industry sectors, Food, Beverage & Tobacco Products remains the strongest, while Transportation Equipment is the weakest. Overall, sentiment this month is marginally positive regarding near-term growth," said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee, in a press release.
Industrial Info's December North American Construction Starts Index, which measures the amount of project activity that was funded and started construction for the year, amounted to $324.57 billion, up 16.2% from a year earlier. Total investment values rose in all but three of the industries tracked by Industrial Info. The value of oil and gas production project starts shot up to more than $23 billion, up nearly 666%.
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, totaled $364.8 billion in December, compared with $417.7 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 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 year to year during the same month.
The active project value in December was $330.84 billion, up from $289.49 billion in December 2018.
The 14.28% gain seen last month compares with an increase of 24.97% ($57.84 billion) recorded for December 2018. With the exception of August, the percentage gains reported for each month of 2019 lagged those of 2018.
Seven of the 12 industries tracked by Industrial Info registered year-on-year spending gains in December.
One of the largest gains last month was seen by Oil & Gas Production Industry, which registered a $17.79 billion year-on-year, or 71.56%, increase in project spending.
The U.S. Energy Information Administration (EIA) estimates that annual average U.S. crude oil production reached a new record of 12.2 million barrels per day (BBL/d) in 2019, up 1.3 million BBL/d from 2018. The EIA forecasts U.S. crude oil production to average 13.3 million BBL/d in 2020 and 13.7 million BBL/d in 2021. More production from the Lower 48 states' onshore regions, especially the Permian region, is driving the forecast increase.
The EIA estimates that U.S. liquefied natural gas (LNG) exports averaged 5 billion cubic feet per day (Bcf/d) in 2019. It expects LNG exports will increase to 6.5 Bcf/d in 2020 and 7.7 Bcf/d in 2021. U.S. LNG export capacity is expected to reach 8.9 Bcf/d by the end of 2020.
Meanwhile, the Power Industry saw a $27.58 billion, or 51.08%, jump in project spending last month from a year earlier.
For this year, wind and solar power are expected to contribute the largest amount of new capacity additions in the U.S. power mix. The EIA expects about 42 gigawatts (GW) of new power to be added, with wind contributing 44% of this and solar 32%. For more information, see January 15, 2020, article - EIA: Wind, Solar to Lead U.S. Power Capacity Additions in 2020.
For December, the Institute for Supply Management's (ISM) manufacturing Purchasing Managers Index (PMI) was 47.2%, down from 48.1% in November, marking the fifth straight month of contractions. A number below 50% represents a contraction in the industry.
The PMI covers 18 industries, ranging from food, beverage and tobacco products to chemical and paper products.
"Global trade remains the most significant cross-industry issue, but there are signs that several industry sectors will improve as a result of the phase-one trade agreement between the U.S. and China. Among the six big industry sectors, Food, Beverage & Tobacco Products remains the strongest, while Transportation Equipment is the weakest. Overall, sentiment this month is marginally positive regarding near-term growth," said Timothy Fiore, chairman of the ISM Manufacturing Business Survey Committee, in a press release.
Industrial Info's December North American Construction Starts Index, which measures the amount of project activity that was funded and started construction for the year, amounted to $324.57 billion, up 16.2% from a year earlier. Total investment values rose in all but three of the industries tracked by Industrial Info. The value of oil and gas production project starts shot up to more than $23 billion, up nearly 666%.
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, totaled $364.8 billion in December, compared with $417.7 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.
