In this month’s IHEA Executive Economic Summary, the indices show “the unemployment rate is very low. . . and the consumer remains in a good mood.”
Of the eleven targeted index readings, seven are pointing in an optimistic direction. The most positive numbers are coming from new automobile/light truck sales, new home starts, steel consumption and credit movement. The report states, “The three areas that stimulate steel consumption are vehicle manufacturing, construction, and to a lesser extent, durable goods and appliances. All three of these sectors have shown some signs of growth in the last month with commercial construction leading the way.”
The other three positive indices in that category are metal prices, capital expenditures, and factory orders. The summary reports, “The rate of factory orders has tapered off a bit, but the levels have remained more or less stable.” The trade wars may spur some reactions, too. “The restrictions on trade with China has altered supply chains as other nations step up to supply, but there has also been some additional purchasing from US factories.”
The concerning news is that these three are barely moving in an upward direction. Of the four that are trending in a negative direction, capacity utilization, new orders (PMI), durable goods orders, and transportation activity, the slump is pronounced. “This is the kind of data that encourages that sense of caution and trepidation.”
As the IHEA Economic Summary reports, “There is a little something under the tree for both the optimist and the pessimist.”
The report is available to IHEA member companies. For membership information and a full copy of the 12-page report, contact Anne Goyer, Executive Director of the Industrial Heating Equipment Association (IHEA). Email Anne by clicking here.
