Economic Update - June 2025

Q2 Industrials Growth Held Steady Despite Macro Noise: Revenue growth in Q2 remained largely in line with Q1, defying concerns around tariffs and global economic uncertainty—though overall growth stayed near historical lows.

Subsector Dispersion Drives Opportunity: While headline growth was muted, sectors like metals & mining and non-residential construction outperformed, while chemicals, transportation, and packaging lagged—highlighting ongoing stock picking potential.

Q3 Outlook Turns Bearish: Forward indicators point to a meaningful slowdown, with ISM orders softening, inventories rising, and pricing indices deteriorating—suggesting increased downside risk for industrials in Q3.