05/11/2015

Oil & Gas Weakness Lowers 2015 Outlook

The April Survey of Economic Indicators prepared for FPDA by Cleveland Research reported that  underlying activity deteriorated throughout the quarter and ended with March sales down 12% on a days adjusted basis (up 3% including an extra day). It appears oil & gas took another step down in March and will be a significant headwind in F4Q and into FY16. This is reflected in the full year 2015 outlook which was lowered by 200bps with sources now forecasting 3-4% growth, down from 5-6% previously. CR sees further risk to the outlook dependent on the magnitude of the oil & gas weakness as well as its impact on the broader industrial market. See the full report here.