The industrial sector is a segment of the economy that is made up of companies that manufacture and distribute goods, transportation services, or the provision of commercial services and supplies. Some of the industries within the sector include: Aerospace & Defense, Building Products & Services, Marine Shipping, and Railroads.
In 2021, the industrial sector rallied 21%, underperforming the S&P 500’s 26.89% gains. In 2022, the economy and stock market are facing some headwinds from heightened geopolitical tensions and a hawkish Fed, overall trends still remain supportive of growth as business spending will increase, which will drive the need for equipment, machinery, and supplies. This could make it a great time to invest in industrial stocks.
