5 Industrial Stocks To Continue Their Winning Streaks In 2019

Increased infrastructure spending, strong employment growth and rise in manufacturing and mining activity remained the major growth drivers of the Industrial Products sector’s performance in 2018. Further, robust construction spending in the United States, higher demand for state-of-the-art construction and engineering services, technology advancements, and entry of smarter products supported the sector’s performance in 2018 despite a strong dollar.

Upbeat Data Supports Optimism

Global manufacturing remains positive, while U.S. manufacturing lingers in expansion territory. Some fresh statistics released regarding manufacturing activities instill optimism for the sector. Per the Institute for Supply Management (“ISM”) latest report, Purchasing Managers’ Index (“PMI”) for November rose 59.3% — exhibiting strong growth in manufacturing for the 27th consecutive month. The upbeat performance continues to be led by strong production output and continued strength in new orders, signaling strong economic momentum.

The PMI has averaged 59.2% over the last 12 months ranging from a low of 57.3% in April 2018 to a high of 61.3% in August 2018. Notably, a reading above 50% indicates expansion in manufacturing economy.

Also, the U.S Architecture Billings Index (ABI), an economic indicator that provides an approximately nine-to-12 month glimpse into the future of non-residential construction spending activity, was 50.4 in October. Any score more than 50 indicates billings growth and reflects a healthy business environment.

According to the ADP National Employment Report, private companies created 179,000 jobs in November. The manufacturing industry created 4,000 jobs, while the construction industry generated 10,000 jobs in the private sector.

In addition, industrial production — a measure of the level of output of manufacturing, mining and utilities sectors — rose 0.1% in November for its fifth consecutive monthly increase. The overall index is now reported to have advanced at an annual rate of 4.7% in the third quarter

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