The percentage of Moody's industry sector outlooks (ISOs) that are negative increased slightly in early 2015 as positive economic momentum wanes worldwide, the rating agency says in a new report.
Industry outlooks reflect Moody's view of the fundamental business conditions for an industry over the next 12 to 18 months.
"The slight negative shift in the current tally, with five outlooks changing to negative and only two moving to positive in the past quarter, suggests that overall economic growth is slowing," says Managing Director, Mark Gray. "However, our mainly stable industry sector outlooks in the first quarter of 2015 reflect our expectations for positive, but moderate global economic growth."
The main underlying forces sapping corporate momentum are macroeconomic, and include decelerating growth in China and other important emerging markets, as well as continued slow, but uneven growth in the euro area, Gray says in "Positive Momentum Slips Worldwide as Oil-Related Outlooks Continue Retreat." And together these factors are overwhelming positive US-based activity.
Along with macroeconomics and related monetary-policy influences on economic activity, falling oil prices are taking their toll, with energy-related businesses accounting for much of the strain among companies worldwide. Energy-related businesses currently account for five of Moody's nine negative ISOs. The outlooks for the base metals, integrated oil and US coal industries were revised to negative from stable during the first quarter, joining exploration and production, and oilfield services and drilling.
Low energy prices were however directly responsible for Moody's outlook revision for the global airlines industry, to positive from stable. The outlook for solid waste industry also moved to positive in the first quarter, on the back of improving market conditions and higher profits due to cost reductions. The outlooks for consumer products and for-profit-hospitals were both revised to stable from positive during the quarter.


China’s Growth Faces Structural Challenges Amid Doubts Over Data
2025 Market Outlook: Key January Events to Watch
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift?
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes
Stock Futures Dip as Investors Await Key Payrolls Data
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data
Urban studies: Doing research when every city is different
Global Markets React to Strong U.S. Jobs Data and Rising Yields
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure
Geopolitical Shocks That Could Reshape Financial Markets in 2025
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 



