Morgan Stanley index shows industrial momentum rising in July

Investing.com -- Morgan Stanley reported its Capital Goods Momentum Index climbed 5 points month-over-month to 58 in July, showing growth across all regions tracked by the investment bank.

The US sub-index increased 5 points, while Europe added 5 points and Asia-Pacific gained 3 points. The Global sub-index recorded the largest advance, rising 7 points during the month.

In the US, General Industrial, Auto, Oil & Gas, and HVAC sectors drove the gains, with minor weakness in land freight. European data showed strength in Germany and construction sectors. Asia-Pacific performance was weaker, pulled down by China and Japan, though India showed improvement.

The Global sub-index benefited from improvements in General Industrial and Aerospace sectors. Morgan Stanley noted the improvement in the Asia-Pacific reading was partially due to a weak April result dropping out of the moving average calculation.

The CAPMI index measures month-over-month momentum of 48 global macro and industry indicators. The index has 42% North America exposure, 19% Europe, 19% Asia-Pacific, and 21% Global data. It tracks major end markets including Aerospace, Automotive, Construction, Oil & Gas, HVAC, Power, and Technology.

A reading above 50 indicates accelerating growth, while below 50 signals decelerating growth. The index's central value is 50, representing stable trends on a monthly basis.

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