Coronavirus Watch: Industrial strength has legs

Among the key themes for 2021 we identified late last year was that the industrial sector would remain a source of strength. Since then, manufacturers have performed even a bit better than we had expected, and we’ve nudged up our industrial production forecasts for 2021.

What you will learn about:

  • Although signs show that orders are beginning to soften in some economies after a period of sustained strength, the slippage is relatively small.
  • Backlogs of work and reduced inventories suggest that production should continue to hold up well.
  • The key uncertainty for the sector concerns the lifting of activity restrictions and the associated reorientation of spending away from goods back to services. While this is likely to hit some sectors that have benefitted from pandemic-related spending shifts, it may support other industrial firms that produce goods that the service sector consumes.

Topics: Global trade, Coronavirus, Industry, Heavy Industry