The Boost to the Industrial Sector in November 2017
Industrial sector in November
In November 2017, the Industrial Select Sector SPDR ETF (XLI), which tracks the performance of the industrial sector, rose 4.2%. On a year-to-date basis, it has returned 21.4% as of November 30, 2017.
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Currently, the industrial sector is in the limelight. Many market participants expect an infrastructure bill in the near future, which could boost the overall performance of the industrial sector. In his election campaign, President Donald Trump said he would focus on infrastructure spending.
The industrial sector is a growth-driven sector. When there’s economic growth, the demand for high-quality infrastructure also increases. Higher infrastructure spending also increases the demand for various industrial products. In the present environment, the United States (SPX-INDEX) (SPY) is showing strong economic growth.
Major holdings of the industrial sector
In the next part of this series, we’ll analyze the performance of the energy sector.