Mining related construction projects increase 8%, reversing a declining trend since 2012
By Joe Govreau
When looking at what factors drive project spending in the mining sector, Gross Domestic Product (GDP) growth and commodity price/demand fundamentals are at the top of the list of leading indicators. In the U.S., GDP growth was 4.2% and 3.5% in the second and third quarters of 2018, respectively, a marked economic improvement after hitting a low of around 1.7% in 2016. However, GDP growth in the U.S. appears to be on a declining trend to under 3% for 2019. Asian nations, including China, are averaging around 6.5% growth, and world average GDP growth has been really going sideways at about 3.7% since 2017, according to the International Monetary Fund (IMF). That sideways movement is expected to continue in 2019.