Capital goods industries tipped as top performers
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.CAPITAL goods industries are expected to benefit from the 'rebalancing' of economic recovery while consumer goods industries are hindered by tax increases and recent rises in import penetration, according to Oxford Economic Forecasting's Industrial Prospects.
The report predicts that manufacturing will outperform over the next years, although there will be considerable variations between the performances of different sectors.
National output is forecast to grow by 3.2 per cent this year, with investment rising by 6.4 per cent and exports increasing by nearly 7 per cent.
Growth in consumer spending, which has so far dominated recovery, is expected to be subdued at 2.9 per cent.
Within manufacturing, OEF expects transport equipment and electrical engineering to perform well but predicts that textiles, clothing, food, drink and tobacco will lag behind.
Construction will suffer if last week's interest rate rise further depresses the housing market, although propsects are brighter for infrastructure and industrial construction and repair and maintenance.
Service sector growth will be subdued by weakening consumer spending growth, but telecommunications should gain from technological advances and stronger competition.
Hotels and catering are expected to benefit from a reviving 'feel good' factor.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments