By: Scott Davis

In this note we update our forecasts for our 20 most important end-markets. We are now deep into a global short-cycle industrial recession, consensus is catching up to reality, numbers have been cut 4 straight quarters, and we find less debate than usual around the outlook for most of our markets. There is modest downward pressure on our forecasts and the majority of industrial verticals are expected to slow further in 2020, though our base case envisions us bottoming in another quarter or two as channel inventories stabilize at lower levels. The recent thawing in U.S.-China trade tensions could also help get stalled projects moving again, though that will take some time. In other words, this could all set up for a slight pick-up in the back half of this year (against easier comps) and a full blown recovery in 2021. It’s an election year, so we do expect plenty of noise…

Report Here