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Quarter-End Insights

Our Outlook for the Industrials Sector

Macro headwinds stiffen across the industrials sector.

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The industrials sector has experienced a mixed bag of results since our last sector outlook in September. Those firms heavily exposed to residential housing and/or soaring fuel costs have continued to take their lumps. Not only are the usual suspects such as homebuilders and auto manufacturers suffering, but we're seeing the negative impact of these macro headwinds spilling into other industries as well. Many of the transportation firms we cover are blaming the depressed housing market for lower freight volumes. In the chemicals industry, companies such as  Dow (DOW) and  Du Pont (DD) are being pinched by higher input costs with oil hovering around $100 a barrel.

John Kearney has a position in the following securities mentioned above: CX. Find out about Morningstar’s editorial policies.