U.S. manufacturing, which makes up 12% of the economy, could remain weak on the lingering effects of the dollar and fuel costs. The strong dollar makes American-made goods more expensive to foreign buyers.
“The dollar is a wet blanket on manufacturing,” Guy Berger, a U.S. economist at RBS Securities Inc., said in the Bloomberg article. “If the dollar remains this strong, we’re going to have headwinds for manufacturing for a while.”
General Electric (NYSE: GE), a major player in the industrial sector and major component in related ETFs, has also recently stated its plans to divest its banking operation and focus on the industrial space, notably its jet-engine business, reports Ted Mann for the Wall Street Journal. GE makes up 10.3% of XLI, 9.8% of VIS and 10.3% of IYJ.
Industrial Select Sector SPDR
For more information on the industrial sector, visit our industrials category.
Max Chen contributed to this article.