InterOcean’s second quarter 2019 Manufacturing Update demonstrates the softness in the U.S. manufacturing sector. The U.S. PMI was at its lowest level (51.7) since September 2016. Valuation multiples fell in most industrial end markets upon weak capital spending. The aerospace and defense and building products industries were two of the few bright spots. The aircraft production forecast and increased defense spending continued to drive growth. Rising wages, low interest rates and continued housing unit inventory shortages should result in increased building products spending activity in late 2019.