Industrials Price Growth Stabilizing

Tracking output prices for a sector is most meaningful either when the price fluctuations are high relative to demand, and/or where the pricing incorporates demand implicitly into it (e.g., high frequency commodity data). Having used macro-economic data to model organic revenues of 130 US companies in different industrials sectors, we can now rank these sectors by the relative importance of pricing (to explain their revenues). Pricing contributes heavily to changes in revenues for Transportation, Chemicals, and Metals & Mining, and has far lower contribution in other sectors (e.g., Machinery). 

As price changes start to moderate, we are now noticing Transportation Y/Y growth slowing in recent months, and other sectors stabilizing.