The American Supply Association’s Industrial Piping Division (IPD) released its economic summary for May that includes updates on tariffs, housing starts and oil prices.
U.S./China trade war tariff impacts have negatively impacted corporate investment. If the tension remains long- term, it would begin to have an effect on non-residential construction.
- If near-shoring activity begins, non-residential construction of industrial production facilities would increase.
- Near-term it could negatively impact corporate investment and spending as companies try to make long-term decisions on sourcing.
Housing starts were still trending at an annualized 1.25 million through May, down about 2.5% year-over-year. Mortgage rates still are favorable for new construction.
Despite supply concerns, oil prices remain balanced based on weaker global demand and strong U.S. inventory supplies.