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ASA distributors report double-digit median sales increase

ASA January economic summary

January 20, 2020

As part of the American Supply Association’s monthly commodity report updates from its Industrial Piping Division, here is the January economic summary.

● Corporate spending rebounded slightly; investment was up 0.2% in November (latest available) and was up by 0.4% Y/Y.

● Despite the industrial side of the U.S. economy slipping into contraction, the consumer side of the U.S. economy remains strong with advanced retail sales growing 6.0% Y/Y through December (latest available).

● Housing starts surged in December Y/Y (latest available) at an annualized 1.61 million rate, up 40.8% year-over-year in a volatile market. Mortgage rates are still favorable for new construction and Fed holding rates steady will help.

● Oil prices remain higher Y/Y by 15.6%, and  U.S. land-based oil rig counts are down 254 units compared to last year through 1/17/2020; Oil is down 179, and gas is down 78.  North American rig counts are down 219 rigs, mostly because of a global economic slowdown that continues.