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, indicating slower economic growth. This has reignited debates on sector rotation, 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 services-driven growth and manufacturing fragility.
Worldwide IT Spending to Rise 14% in 2025, Fastest Since 1996
IDC forecasts global IT spending (hardware, software, services) to increase 14% to $4.25 trillion in 2025, driven by AI infrastructure investments. Service providers' aggressive AI deployments and enterprise software growth in digital transformation create a virtuous cycle of tech-led economic expansion.
Software spending also up 14%, boosted by AI, security, and analytics.
Global ETF Assets Hit Record $19.44 Trillion in 2025
ETFGI reports ETF assets rose 31% year-to-date to $19.44 trillion, with $218.24 billion net inflows and 2,759 new launches. Active ETFs drew $581.25 billion YTD inflows, while commodities ETFs attracted $90.33 billion.
November saw 78th consecutive month of net inflows amid strong developed market gains.
S&P Global PMI Signals Cooling U.S. Growth into 2026
S&P Global’s December U.S. PMI indicates Q4 GDP growth slowing to 2.5%, with sharp waning in services sales ahead of holidays. Factory orders fell for first time in a year, inflation hit highest since 2022 due to tariffs impacting manufacturing and services.
Firms cut hiring amid rising costs and outlook concerns.
AI Infrastructure Fuels 86% Surge in Datacenter Spending
Service provider datacenter infrastructure spending (servers, storage, networks) set to rise 86% to nearly $500 billion in 2025. This AI investment wave, strongest since 1996, supports enterprise IT growth at 10-11% in early quarters.
IDC raised forecasts 7th straight month on over-performance.
Market Concentration in AI and Tech Dominates 2025 Gains
2025 saw global equity gains concentrated in AI, digital infrastructure firms, raising diversification concerns. Visibility in infrastructure, energy, and security sectors outperformed frictionless growth-dependent ones in Europe.
Emerging markets uneven due to dollar strength and climate risks.
Energy Transition Faces Dual Supply Security Constraints
2025 energy markets showed unsynchronized transition with steady fossil investments alongside renewables. Gas as strategic asset, oil in moderate demand ranges; Europe improved supply diversity.
Upstream investments substantial despite transition pressures.
Commodities Tighten on Electrification and Digital Demand
Copper, lithium, nickel, rare earths face rising demand from electrification and AI, constrained by supply limits. Material realities reasserted importance in industrial metals markets.
This underscores challenges in scaling green and digital infrastructures.
Sector Rotation Favors Banking Over Consumer Discretionary
Post-PMI miss, historical data shows banking (XLF) gains during services slowdowns, e.g., 2% in July 2025. Consumer discretionary (XRT) declined amid tariffs, inflation, Fed pivots.
S&P Financials surged on AI optimism and rate cuts.
Emerging Payments and Cloud Providers Eye Massive Growth
dLocal targets $1.4T emerging market with <1% penetration via digitalization and underserved banking. Nebius Group grows as European AI cloud alternative to US giants, up 184%.
T1 Energy benefits from AI data center power surge as US renewables leader.
Supply Chain Shifts as Imports and Warehouses Decline
Late 2025 sees declining import and warehouse figures, prompting flexible network strategies. Freight spot rates and rejection rates climb in December, showing market strength.
Resilience builds amid tariffs and disruptions.
BofA Survey: AI Bubble Concerns Ease Slightly
Bank of America’s December Global Fund Manager Survey shows AI bubble worries dropping from 45% to 38%. Investor lessons from 2025 highlight cooling growth signals across services and manufacturing.
Tariffs blamed for broad inflation spillover.