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Quarter-End Insights

Transportation, Construction Optimism Lifts Industrials

We expect the U.S. to increase spending on missiles, missile defense, and space militarization.

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The Morningstar US Industrials Index outperformed the broader market over the trailing 12 months after a strong first-quarter performance. Farm and heavy construction machinery and construction stocks were the top performers during the quarter amid growing optimism over a U.S. infrastructure spending plan. Strong performance from transportation and logistics stocks (including airlines) boosted the index’s performance as well. Industrial distribution, waste management, and business-services stocks were laggards during the quarter.

Industrials have outperformed overall U.S. equities - source: Morningstar

Brian Bernard does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.