Industry Voice: Federal spending could be a catalyst for industrials

The potential size and scope of future federal spending bills to bolster the economy, especially an infrastructure measure, would have important implications for the industrials sector.

clock • 3 min read

After passing the Tax Cuts and Jobs Act, President Donald Trump issued an infrastructure agenda that never resulted in legislation. Should he win re-election, Trump could push for a package targeting surface transportation improvements—measures to repair roads and bridges—along with airports and other critical infrastructure. Democratic candidate and former Vice President Joe Biden, by contrast, has called for an ambitious plan to fund traditional infrastructure projects while also investing heavily in clean power and energy efficiency. 

If implemented, Biden's expansive plans could accelerate the push for energy efficiency and reductions in greenhouse gas emissions—a secular trend that would affect companies specializing in air compressors, rail, commercial aircraft, electric vehicles, and industrial gases.

The ultimate shape of either candidate's infrastructure plan would depend heavily on the balance of power in the Senate. 

Regardless of which candidate wins the presidential election, Jason Adams, portfolio manager of the Global Industrials Equity Strategy, believes some type of infrastructure bill is likely—which could be a boost to machinery and construction companies.

 

Read More

 

Important Information

For professional clients only. Not for further distribution.

This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.

The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.

Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.

The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.

It is not intended for distribution to retail investors in any jurisdiction.

This material is issued and approved by T. Rowe Price International Ltd, 60 Queen Victoria Street, London, EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.

© 2020 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the bighorn sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc.

More on Investment

Investment Company of the Year Awards Winners Interview - JPMorgan Global Growth & Income Investment Trust

Investment Company of the Year Awards Winners Interview - JPMorgan Global Growth & Income Investment Trust

clock 22 February 2024 • 3 min read
Investment Company of the Year Awards Winners Interview - JPMorgan European Growth & Income plc

Investment Company of the Year Awards Winners Interview - JPMorgan European Growth & Income plc

clock 22 February 2024 • 4 min read
Partner Insight: Global social bonds can offer more impact

Partner Insight: Global social bonds can offer more impact

Impact investing offers investors the opportunity to pursue financial returns and social and environmental outcomes.

Sarka Halas
clock 21 February 2024 • 2 min read
Trustpilot