October non-metallic mineral product industry indexes

USGS has released October industry indexes for non-metallic mineral products in the US. Under the Standard Industrial Classification System, this is classified as the stone, clay, glass and concrete products industry.

The non-metallic mineral products industry leading index decreased by 0.6% to 243.5 in September from a revised 245.0 in August, and its 6-month smoothed growth rate decreased to 1.3% from a downwardly revised 2.8% in August. As a compound annual rate, the 6-month smoothed growth rate measures the near-term trend.

This decrease in the leading index growth rate indicates that activity in the non-metallic mineral products industry will be slow in the near future. Accounting for two thirds of all construction spending, non-residential construction has slowed during 2015. The weak manufacturing sector has limited the start of new manufacturing plants and warehouse structures. Low oil and gas prices have been caused by high oil inventories.

Activity in residential construction however could lift non-metallic mineral products demand. With single-family home inventories significantly below a balanced housing market level, increased housing demand is likely to promote residential construction activity in the coming months.

Three of the four leading index indicators decreased in September. A sharp decline in the index of new housing permits issued contributed -0.4% to the net decrease in the leading index. A drop in multi-unit apartment building permits limited total housing permits, which was nearly 40% lower than the 8-year high total permits achieved in June. A shorter average workweek in non-metallic mineral product facilities contributed -0.2%. The S&P stock price index for building products companies decreased from its August record high and contributed -0.1% to the leading index. The yield spread between the U.S. 10-year Treasury Note and the Federal Reserve’s federal funds rate was unchanged from August. The coincident index, which measures current industry activity, decreased 0.8% to 140.2 in September from a revised 141.3 in August. Its 6-month smoothed growth rate decreased to 1.4% in September from a downwardly revised 3.4% in August.

Edited from source by Rebecca Bowden Source: USGS

Read the article online at: https://www.worldcement.com/the-americas/23102015/october-non-metallic-mineral-product-industry-indexes-835/