Industrial Revival Builds as Policy and Energy Risks Collide

State Street Investment Management’s Weekly Economic Perspectives notes strengthening U.S. industrial momentum alongside shifting policy signals globally 

• U.S. industrial production rose 2.3% y/y in January—the strongest since 2022—with leading indicators such as new orders pointing higher (p.2).

• Canada’s Q4 GDP declined -0.6% annualized, but domestic demand remained firm, limiting pressure on the BoC.

• Australia’s inflation surprise (3.8% y/y) increases the probability of an RBA hike as energy costs distort near-term prints.

Is the industrial upswing durable—or vulnerable to renewed energy and policy shocks? The full commentary explores the balance.