Machinations | finnCap Industrial Technology quarterly sector note
Torquing points. Economic data is now coming through that quantifies the scale of contraction through the lockdown, while forward-looking PMIs have recently jumped to close to the magic 50 level across the UK, EU and US. It seems premature to consider this a V-shaped recovery, with a potential second wave undermining customer confidence. We are encouraged by the UK government’s Phase 2 stimulus package following fairly generous support measures through the lockdown. Support of infrastructure projects is helpful, but note there is no direct support for either aviation/aerospace or automotive sectors, which is regrettable. A trade-friendly outcome to Brexit would be a pragmatic and low-cost one that should be welcomed by the sector, given its international diversity.
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