Gavekal Capital: U.K. Industrials

Thursday, November 21, 2013

U.K. Industrials

Today's release of the CBI Industrial Trends survey showed the strongest increase in total orders since 2007:

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This would suggest that positive trends in U.K. Industrial Production continue:

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The Industrial sector in MSCI United Kingdom is the third best performer (behind the Telecom and Consumer Discretionary sectors) on an absolute and relative basis over the last year:

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Digging deeper, the best performing sub-industry over the last year has been the Airlines (comprised of just one stock, EasyJet), followed by Industrial Machinery:

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A quick look at the constituents of the U.K. Industrial Machinery sub-industry reveals one especially outstanding performer in the group:

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Finally, when we look at our point-and-figure charts, along with the underlying data on price movements, we see that, once again, the highest average daily percent change generates the best relative performance:

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