Analysis across industries undertaken by a research firm suggests the auto industry is emerging as a relatively strong performer in the recovery from the pandemic.
GlobalData, a leading data and analytics company, has undertaken an analysis of activity levels across 18 industries, comparing pre-pandemic activity levels with those up to the second quarter of this year. Activity levels are expressed in the form of an index derived from company level data on hiring, deals, stock prices and sentiment analysis of news reports and financial filings.
According to the wide-ranging analysis of activity, the automotive sector’s level of overall activity in Q2 of this year was running well above pre-Covid levels (measured at Q4 2019) and ahead of most other industrial sectors measured.
A further analysis undertaken of listed companies’ stock prices also shows the automotive sector as the top sectoral performer, even ahead of tech stocks.
GlobalData analyst Dave Leggett said: “It has been a tough and unprecedented period, of course, for all industries – including automotive. However, we have seen a pretty strong recovery in automotive which set in last year when economies re-opened and vehicle demand quickly came back on stream, to the benefit of top and bottom lines at both vehicle manufacturers and suppliers – who have also been keeping cost bases well under control.
“Moreover, bright prospects for electrified vehicles in the context of a green recovery have also lifted prospects and sentiment for the sector.
“However, the pandemic is far from over – illustrated in recent setbacks in southeast Asia – and the global semiconductors shortage is acting to constrain new vehicle sales. It’s perhaps a case of autos being in a relatively good position, but still needing to be very cautious on prospects which are ultimately tied to what happens to the global economy. Major uncertainties remain.”