Latest Industry Trends News
U.S. Markit Composite PMI Misses Forecast at 53.0
The December 2025 U.S. Markit Composite PMI fell to 53.0, below the 53.9 forecast, signaling slower economic growth. This has reignited sector rotation debates, with defensive banking sectors outperforming consumer discretionary by historical margins like 3.5% during similar misses.
Investors are advised to overweight financials like XLF amid manufacturing fragility.
Global Economic Divergence in Growth and Policy
The week ending December 20, 2025, highlighted regional divergences, with U.S. inflation at 2.7% and mixed jobs data at 64,000 added. UK cut rates to 3.75% amid 3.2% inflation, while China's retail sales grew only 1.3% despite 4.8% industrial output.
This uneven landscape influences capital flows and investor sentiment.
Central Banks Intensify Policy Divergence into Year-End
Fed signaled a pause after cuts, BoJ tightened, and ECB held steady with upgraded growth outlook. U.S. economy cooled with easing inflation and softening labor data, avoiding recession.
Europe saw business expansion fastest in over two years, supporting euro strength.
AI Revolution Creates 10 Jobs for Every One Displaced
In 2024-2025, AI investment generated ten new jobs per displacement in data centers, integration, and engineering. Enterprises shifted to buying APIs from OpenAI and others, with 76% avoiding custom model builds.
The MIT 'Iceberg Index' highlights hidden AI potential in finance and logistics.
Digital Ad Impressions Surge 149% in India
India's digital ad volumes jumped 149% in 2025 per TAM AdEx, making it the primary channel for brands. This shift from traditional media underscores rapid digital dominance in marketing spend.
Companies now prioritize digital for most advertising decisions.
U.S. Manufacturing and Services PMIs Show Growth Despite Misses
Flash Manufacturing PMI hit 51.8 and Services 52.9 in November, below expectations but indicating expansion. November jobs added 64,000 vs. 51,000 expected, after October's -105,000 revision.
Retail sales were flat, with core up 0.4%.
K-Shaped Consumer Recovery in Holiday Spending Trends
Holiday trends like Elf on the Shelf and items from Labubu to luxury show resilient premium spending amid price sensitivity. This K-shaped recovery reflects bifurcated consumer health heading into 2026.
AI supports economy but broader market catches up to Magnificent Seven.
Supply Chain Shifts as Imports and Warehouse Figures Decline
Late 2025 saw declining imports and warehouse figures, prompting strategy changes. December freight market strengthened with climbing spot rates and rejection rates.
Emphasis grows on resilient, flexible networks amid disruptions.
USD Index Down 9% in 2025 Amid Tariff Resilience
DXY fell 9% YTD due to resilient U.S. trading partners despite Trump tariffs. Geopolitics like Ukraine and China-Japan tensions bolstered USD haven status.
ECB optimism on growth from infrastructure spending noted.
Broadening Market Rally with Small-Cap Outperformance
Year-end saw small-cap and cyclical stocks outperform mega-cap tech, improving breadth. Treasury yield curve uninverted after over two years, signaling less restrictive policy.
Equity markets ended higher despite choppy December trading.
2026 Outlook: Calmer Environment for Risk Assets
Post-2025 volatility, 2026 offers supportive conditions with rising productivity and moderating inflation. K-shaped consumer trends show premium resilience but low sentiment.
Smaller firms cut headcount while larger hire, creating upside potential.
Equity Markets Consolidate in Uptrend
SPY and IWM showed strength post-Quad Witching, with VXX in normal range aiding upside. Gold eyes all-time highs, crude oil nears downtrend, USD drifts up.
Shanghai Composite pauses uptrend, emerging markets hold steady.