IIR Project Spending Index Falls into Negative Territory

Industrial Info's latest North American Industrial Project Spending Index recorded a drop in year-over-year project spending, with large reductions seen in the Industrial Manufacturing and Pharmaceutical & Biotech industries, among others.

The active project value for April was $850.34 billion, down 2.02% from a year earlier. The Project Spending Index is a monthly indicator that compares active spending rates with the same month in the previous year to get a measure of growth or contraction in the industrial market. The index provides spending details by industry and market region.

For April, just four of the 12 industries tracked by Industrial Info registered spending increases. Since January, overall spending generally has trended down.

The Industrial Manufacturing Industry registered a year-over-year spending drop of $48.42 billion, or 17.58%. According to the Institute for Supply Management, manufacturing activity in the U.S. contracted in April. For related information, see May 3, 2024, article - ISM: U.S. Manufacturing Activity Falls Back into Contraction Territory. According to the U.S. Federal Reserve's April Beige Book on economic activity, manufacturing activity declined slightly from February, as only three of its 12 districts reported growth in the industry. Industrial Manufacturing continues to see strength in various sectors, such as fulfillment centers. For more information, see May 17, 2024, article - From Click to Doorstep: U.S. Sees Investment Surge in Fulfillment Centers.

The Pharmaceutical & Biotech Industry, meanwhile, registered a spending drop of $12.98 billion, or 25.68%. The medical devices and equipment sector remains robust. For more information, see April 2, 2024, article - Medical Devices & Equipment Sector Brings Billions in Spending to the U.S.

Industries that registered year-over-year spending increases included Power (up 23.44%), Oil & Gas Terminals (up 3.8%), Chemical Processing (up 154.95%) and Pulp, Paper & Wood (up 29.96%).