Our outlook for industrials stocks

Slowing global industrial activity presents compelling long-term investment opportunities among a handful of companies.

Adam Fleck, CFA 4 July, 2013 | 4:44AM

Highlights
Macro industrial indicators turned downward in the second quarter, as purchasing managers' surveys across the U.S., China, and Europe all posted metrics below the key growth level of 50.
U.S. industrial production grew at a slightly higher year-over-year rate in May versus April, but output remained slow compared with recent quarters.
Gains in housing and automotive continue to lead the sector, and while non-residential construction is taking a pause, we expect further gains as the year progresses.

The second quarter brought renewed concerns about the global industrial economy. Purchasing managers' indexes fell or remained below the growth demarcation of 50 in key geographies such as the United States, China and Europe, while other indicators such as China's electricity consumption showed signs of slowing. Moreover, U.S. industrial production in May was relatively flat sequentially and grew at the slowest year-over-year rate (1.6%) since February 2010.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Adam Fleck, CFA

Adam Fleck, CFA  Adam Fleck is the regional director of equity research for Australia and New Zealand at Morningstar.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies