Tuesday, November 5, 2013

Autos Driving Capital Spending (excerpt)

As I noted yesterday, the US auto industry is leading a global rebound in manufacturing this year. However, sales remain below the previous cycle’s high pace. Yet both new orders and industrial production of motor vehicles and parts were in record-high territory during September.

Undoubtedly, the strength of the auto industry is contributing to the strength in new orders for both industrial machinery and metalworking machinery. The former is near previous cyclical highs, while the latter is in record-high territory.

On the other hand, machinery demand for construction and farming has been relatively weak recently. The same can be said of new orders for mining, oil field, and gas field machinery. All three tend to be very volatile on a monthly basis.

Today's Morning Briefing: Industrious Industrials. (1) Are companies short-sighted? (2) From “TMT” to “MEI” to “CFI.” (3) Capital goods orders stalled at cyclical high, but orders for factory machinery at record highs. (4) New tech revolution led by Cloud, Big Data, and GPS technologies rather than computer hardware. (5) Backlog of orders for civilian aircraft at record high. (6) Industrials are less volatile way to play global growth than Materials & Energy. (7) Yellen and Yale. (More for subscribers.)

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