InterOcean Quarterly Manufacturing Update – Q4 2019

- Market Information & Reports

InterOcean’s fourth quarter 2019 Manufacturing Update displays strengthening in the U.S. manufacturing sector.  The U.S. PMI contracted again in the fourth quarter, to its lowest level (47.2) since 2009.  While this contraction is not a favorable sign for the manufacturing sector, we believe it to be temporary and will increase in early 2020. Valuation multiples increased in all but one of the IOA industrial end markets during the fourth quarter.  The Electrical Products and Flow Control segments both experienced very positive trends to finish off the year; demand for automation and new technology continue to drive growth in these segments.  In our third quarter report we indicated that due to rising wages, low interest rates, and continued housing unit inventory shortages we would see growth in the housing sectors during the fourth quarter- the Building Products index and Housing Starts finished the fourth quarter up almost 10% and 30% respectively.

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