Global Industry Forecasts > Quarterly Industry Forecasts > Engineering And Metal Goods

Capital goods demand is evolving largely as expected inthe developed world, as diminishing spare capacity,access to financing, and growing confidence in thedurability of the global recovery encourages firms to invest.However, the Chinese rebalancing away from investmentis evolving more rapidly than we foresaw. Furthermore, thetrade recovery appears somewhat at risk, with weaknessaffecting Asian machinery producers in particular. As aresult, we expect global sector output to expand by 5¼%this year, a slight downgrade.