Latest Industry Trends News
AI Infrastructure and Semiconductors Drive Sector Leadership
Cyclical sectors tied to manufacturing lagged, while AI infrastructure, semiconductors, cloud, and productivity software showed strong profit momentum with cash flow generation. Institutional research notes this cycle differs from past speculations due to real investments in data centers and chips.
Earnings durability in tech remains central, with forward AI estimates trending higher.
US Composite PMI Slips to Six-Month Low
Flash US composite S&P Global PMI fell to 53.0 in December from 54.2 in November, with services at 52.9 and manufacturing at 51.8. New business rose at the slowest pace in 20 months, and goods orders fell for the first time in a year.
Readings above 50 still indicate expansion but signal cooling activity.
Earnings Growth Set to Broaden Across All S&P 500 Sectors in 2026
Forecasts show all 11 S&P 500 sectors projecting positive earnings growth next year, with industrials and materials above 14%. Technology and communication services expect double-digit gains, supporting diversification beyond mega-caps.
This shift follows concentrated 2025 leadership in tech sectors rising over 20%.
Embodied AI Advances in Robots, Healthcare, and Mobility
Humanoid robots advance toward multi-industry adoption by decade's end due to AI progress and falling costs. Surgical robots market projected to double from $23B in 2025 to $52B by 2030; eVTOLs expected to grow 62% in 2025-30.
AI glasses shipments to exceed 10M in 2025, with AR maturing by 2027.
Electricity Demand Surges from AI Data Centers and EVs
Rising power needs from data centers, electrification, industry, and EVs push utilities to invest in generation and reserves. Global GHG emissions hit 53.2 Gt CO2e in 2024, up 1.3%.
AI acts as infrastructure impacting grids, workforces, and GDP.
Euro Area PMI Falls from Two-Year High
Euro Area composite flash PMI dropped to 51.9 in December from 52.6, below expectations. UK composite rose to 52.1, while Japan manufacturing PMI improved to 49.7 on stronger demand.
Australia's services PMI fell to 51.0 amid competition.
Labor Market Cools Gradually with Resilient Wages
US labor data shows slower wage growth and fewer openings, but low unemployment and pay exceeding inflation support spending. Slowing labor supply contributes to cooling jobs growth.
Conditions adjust at measured pace without contraction.
Inflation Cools to 2.7% Annual Pace
Headline CPI slowed to 2.7% in November, below 3.0% expectations, reinforcing easing pressures. Uneven but constructive progress noted by Fed, with gradual future rate easing.
Risks of hotter medium-term inflation from trade, fiscal policies, and AI capex.
US Equity Premium Persists in AI Race
S&P 500 trades at premium to international indices, driven by AI ecosystem prospects even excluding Magnificent 7. Strong AI capex investments boost 2026 economy amid trade protectionism and policy shifts.
Investors sanguine on short-term effects despite structural changes.
Promo Industry Sees Q3 Sales Rebound After Tariff Hits
Promotional products sales rose 5% YoY in Q3, highest in 2 years, after Q1/Q2 drops of 3.6%/3.2% from tariffs. US-China tentative tariff agreement followed threats of 100% levies on rare earths.
Signals potential economic recovery for affected sectors.
Global External Debt in Low-Income Countries Slows
End-2024 external debt stocks for low/middle-income countries at $8.9T, growth slowed to 1.1% from 2023. Over 70% global population uses internet, but disparities remain; SPI covers 188 economies.
IMF notes AI energy demands and rising public debt as key 2025 issues.