Around the World in 80 Datapoints: May 2026: Hovering above the waterline

Research evidence excerpt

Around the World in 80 Datapoints: May 2026: Hovering above the waterline

Around the World in 80 Datapoints EquitiesIndustrial

May 2026: Hovering above the waterline Global

◆ HSBC’s Global Composite Capex Lead Indicator recorded +2 in May 2026 vs +5 in March, with the trendline still

showing a consistent positive slope towards a manufacturing upcycle and momentum in Americas ongoing Sean McLoughlin*

Senior Global Industrials Analyst

HSBC Bank plc

◆ By sector, trendlines show manufacturing in upcycle, construction and utilities positive albeit with some fade, sean.mcloughlin@hsbcib.com

transport improving, process volatile, and consumer in persistent downcycle +44 20 7991 3464

Wesley Brooks, CFA

◆ Stock ideas: Emerson (EMR US, Buy, TP USD170) on US ISM improvements (pg 10) and 3M Company HSBC Securities (USA) Inc.

(MMM US, Buy, TP USD185) on US metalworking machinery order improvement (pg 11) wesley.brooks@us.hsbc.com+1 212 525 0337

Laisha Zaack*

Indicator +2 in May 2026 vs +5 in Mar 2026 ◆ A reading of +2 still indicates potential for modestly positive FTSE Senior Global Industrials Analyst HSBC Mexico, S.A., Institucion de Banca Multiple,

World Industrials performance over the next six months (pg 4). Grupo Financiero HSBC

HSBC’s Capital Goods Global Composite Lead Indicator and The sector is up 8% y-t-d as the market shrugs off concerns such laisha.zaack@hsbc.com.mx

FTSE World Industrial Index, May 2026 +52 55 8551 3796 as tariffs and inflation. Despite some geopolitical and supply-chain

80% 80

concerns reflected in some late-cycle indicator weakness, we note Issuer of report: 60% 60

rising optimism on US cyclical growth (supported by investments in HSBC Bank plc

40% 40

AI and reshoring) and some improvements in APAC (industrial

20% 20 29 June 2026

0% 0 automation).