Upcoming Event: ESNA 2019 Conference and Expo

November 5-7, 2019 in San Diego, CA

Join 2500 industry leaders representing over 30 countries at the largest and most influential grid-connected and energy storage conference and expo in North America.

ESNA is pleased to offer the events below as part of their international programming:

ENERGY STORAGE ON THE MOVE WEBINAR:
On September 19 at 11 AM PT (2 PM ET), and in partnership with ITA, ESNA will host a free, public webinar on “How Vehicle Electrification is Shaping the Future Global Electricity Landscape.” You can register for the free here.

GLOBAL GRID TRANSFORMATION AT ESNA 2019:

ESNA will host the Global Grid Transformation program, a one-day facilitated roundtable and workshop with key stakeholders from around the world. International delegations come together to promote cross-border collaboration on grid transformation issues with policymakers and companies with a focus on promoting a decarbonized, resilient and affordable power grid.

SITE VISIT OPTIONS AT ESNA:
Registered attendees are eligible to sign up for an optional site visit to an energy facility in the San Diego region on the morning of November 5. Site visits are available on a first-come, first-served basis and fill up quickly.

ESNA FELLOWSHIPS AVAILABLE FOR GOVERNMENT POLICY MAKERS:
ESNA offers fellowships to distinguished government representatives, decision makers, and thought leaders who may otherwise not be able to attend the event. The fellowships include a free All-Access pass to ESNA.

The ESNA application deadline is October 15, 2019.

Real Consumer Spending Rises in July

BEA Graphic on Real Disposable Personal Income and Real Consumer Spending
Bureau of Economic Analysis (BEA)

Personal income increased 0.1 percent in July after increasing 0.5 percent in June. Wages and salaries, the largest component of personal income, increased 0.2 percent in July after increasing 0.5 percent in June.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.3 percent in July after increasing 0.4 percent in June.

Real DPI, income adjusted for taxes and inflation, increased 0.1 percent in July after increasing 
0.3 percent in June.

Real consumer spending (PCE), spending adjusted for price changes, increased 0.4 percent in July after increasing 0.2 percent in June.

Spending on durable goods increased 1.1 percent in July after showing no change in June.

PCE prices increased 0.2 percent in July after increasing 0.1 percent in June. Excluding food and 
energy, PCE prices increased 0.2 percent in July, the same increase as in June.

Personal saving as a percent of DPI was 7.7 percent in July and 8.0 percent in June.

BEA: Direct Investment by Country and Industry, 2018

The Bureau of Economic Analysis released direct investment by country and industry 2018 statistics on July 24.

The U.S. direct investment abroad position, or cumulative level of investment, decreased $62.3 billion to $5.95 trillion at the end of 2018 from $6.01 trillion at the end of 2017. The decrease was due to the repatriation of accumulated prior earnings by U.S. multinationals from their foreign affiliates, largely in response to the 2017 Tax Cuts and Jobs Act. The decrease reflected a $75.8 billion decrease in the position in Latin America and Other Western Hemisphere, primarily in Bermuda. By industry, holding company affiliates owned by U.S. manufacturers accounted for most of the decrease.

The foreign direct investment in the United States position increased $319.1 billion to $4.34 trillion at the end of 2018 from $4.03 trillion at the end of 2017. The increase mainly reflected a $226.1 billion increase in the position from Europe, primarily the Netherlands and Ireland. By industry, affiliates in manufacturing, retail trade, and real estate accounted for the largest increases.

Other highlights from the direct investment statistics for 2018:

  • The U.S. direct investment abroad position decreased for the first time since 1982 due to repatriations of $776.5 billion by U.S. multinationals. By country, nearly half of the repatriations were from Bermuda and the Netherlands. By industry, U.S. multinationals in chemical manufacturing and computer and electronic products manufacturing repatriated the most.
  • The foreign direct investment in the United States position was concentrated in the U.S. manufacturing sector, which accounted for 40.8 percent of the position.

Foreign Direct Investment in the U.S. Rises in 2018

Graphic on New Foreign Direct Investment Expenditures by Type, 1996-2018. (U.S. Bureau of Economic Analysis)

On July 2, the Commerce Department’s Bureau of Economic Analysis (BEA) released updated annual statistics on the amount and characteristics of new investments in the United States by foreign investors.

Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion in 2018, up 8.7 percent from $272.8 billion in 2017.

Additional highlights of the statistics on new foreign direct investment for 2018:

  • Expenditures for acquisitions were $287.3 billion, expenditures to establish new U.S. businesses were $5.3 billion, and expenditures to expand existing foreign-owned businesses were $3.8 billion.
  • Total planned greenfield investment expenditures—expenditures to establish new U.S. businesses and to expand existing foreign-owned U.S. businesses—for investments initiated in 2018, which include both first-year spending and planned spending in other years, totaled $30.8 billion.
  • Employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 430,600 in 2018.

Treasury International Capital Data for March

Washington – The U.S. Department of the Treasury today released Treasury International Capital (TIC) data for March 2019. The next release, which will report on data for April 2019, is scheduled for June 17, 2019.

The sum total in March of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC outflow of $8.1 billion. Of this, net foreign private inflows were $13.6 billion, and net foreign official outflows were $21.7 billion.

Foreign residents decreased their holdings of long-term U.S. securities in March; net sales were $30.3 billion. Net sales by private foreign investors were $20.6 billion, while net sales by foreign official institutions were $9.7 billion.

U.S. residents decreased their holdings of long-term foreign securities, with net sales of $1.9 billion.

Taking into account transactions in both foreign and U.S. securities, net foreign sales of long-term securities were $28.4 billion. After including adjustments, such as estimates of unrecorded principal payments to foreigners on U.S. asset-backed securities, overall net foreign sales of long-term securities are estimated to have been $40.6 billion in March.

Foreign residents increased their holdings of U.S. Treasury bills by $23.9 billion. Foreign resident holdings of all dollar-denominated short-term U.S. securities and other custody liabilities increased by $69.7 billion.

Banks’ own net dollar-denominated liabilities to foreign residents decreased by $37.2 billion.

2019 Global Entrepreneurship Summits

The Global Entrepreneurship Summit (GES) is the preeminent annual gathering that convenes entrepreneurs, investors, and their supporters globally. An estimated 20,000 emerging leaders have participated in Global Entrepreneurship Summits since 2010. At previous GES summits, governments and the private sector have committed to provide over $1 billion in new capital to entrepreneurs worldwide.

On November 15, 2018, the U.S. and the Netherlands officially launched the upcoming 2019 Global Entrepreneurship Summit, which is scheduled to be held in The Hague, Netherlands on June 4-5, 2019. As previously announced by President Donald J. Trump and Prime Minister Mark Rutte in July, the ninth annual GES will underscore the commitment by both countries to entrepreneurship and innovation. The launch kick-starts the “Road to GES” events, taking place in both the Netherlands and the United States.

The 2019 Global Entrepreneurship Summit will invite the world’s most inspiring entrepreneurs innovating in Agri/Food, Connectivity, Energy, Health, and Water five key investment areas.

Job creation smashes expectations, unemployment rate falls to 49-year low

The United States economy continued to thrive in April, with the unemployment rate dropping to 3.6 percent—the lowest unemployment rate since December 1969, according to the Bureau of Labor Statistics’ (BLS) household survey. April also marks the 14th consecutive month of the unemployment rate being at or below 4 percent.

The rapidly growing economy continues to benefit a wide range of demographic groups. The unemployment rate for adult women (20+) reached 3.1 percent in April, its lowest rate since 1953. The unemployment rate for Hispanics fell to 4.2 percent—the lowest rate since the series began in 1973. The unemployment rate for individuals with only a high school degree fell to 3.5 percent—matching the lowest rate since 2000. The unemployment rate for those with a disability fell to 6.3 percent in April—the lowest rate since the series began in 2008. Additionally, the unemployment rate for veterans fell to 2.3 percent—the lowest rate since the series began in 2000.

The U-6 unemployment rate, a broader measure of unemployment that includes those who are unemployed, marginally attached to the labor force, and working part-time for economic reasons, remained at 7.3 percent in April, matching the lowest U-6 rate since December 2000.

A separate survey from BLS, the Employment Situation Report, showed total nonfarm payroll employment in April rose by 263,000 jobs, far surpassing market expectations (190,000). In total, the economy has added over 5.8 million jobs since President Donald J. Trump was elected. The month of April continued the longest streak of growth on record.

Employment gains have exceeded 100,000 jobs in 27 of the 29 months since the 2016 election. Including revisions for the months of February and March, the average pace of job growth has been a healthy 218,000 jobs per month over the past year and 205,000 jobs per month so far in 2019. Job gains were predominantly concentrated in professional and business services (76,000 new jobs), education and health services (62,000 new jobs), and leisure and hospitality (34,000 new jobs). The construction sector added 33,000 new jobs in April, and has added 669,000 jobs since the 2016 election.

On top of the good news about job growth, the report indicates that wages are rising, too. Nominal average hourly earnings in April rose by 3.2 percent over the past 12 months, marking the 9th straight month that year-over-year wage gains were at or above 3 percent. Prior to 2018, nominal average hourly wage gains had not reached 3 percent since April 2009. Taking inflation into account, there is more evidence that real wages are also growing. Based on the most recent Personal Consumption Expenditures (PCE) price index data from March, inflation in the past year was 1.5 percent, and, based on the most recent Consumer Price Index (CPI-U) price data from March, inflation in the past year was 1.9 percent. This offers evidence that real wages are rising, and people are able to purchase more goods and services with their larger paychecks.

These most recent BLS surveys depict a strong American economy. Employment growth in April surpassed expectations with 263,000 new jobs, while the unemployment rate of 3.6 percent is the lowest rate in nearly half a century. With continued positive job growth, sustained low unemployment, and rising real wages, the economy continues to thrive.