Overview
Morgan Stanley reported that its Capital Goods Momentum Index (CAPMI) increased by five points month‑over‑month, reaching a level of 58 for July 2026. A reading above the neutral threshold of 50 denotes accelerating growth in the covered sectors.
Regional Sub‑indices
The United States sub‑index rose five points, Europe also added five points, while the Asia‑Pacific sub‑index gained three points. The Global sub‑index posted the largest increase, climbing seven points during the month.
Sector Drivers
In the United States, the gains were led by the General Industrial, Auto, Oil & Gas, and HVAC sectors, with only minor weakness observed in land freight. European data showed strength particularly in Germany and the construction sector. In Asia‑Pacific, performance was weaker overall, dragged down by China and Japan, although India recorded an improvement.
Global Composition
The CAPMI tracks month‑over‑month momentum of 48 macro and industry indicators, with exposure weighted 42 % to North America, 19 % to Europe, 19 % to Asia‑Pacific and 21 % to Global data. The index monitors major end‑markets including Aerospace, Automotive, Construction, Oil & Gas, HVAC, Power and Technology.
Methodology Note
Morgan Stanley indicated that the modest rise in the Asia‑Pacific reading was partially offset by the removal of a weak April result from the moving‑average calculation.
Interpretation
A July level of 58 suggests that industrial momentum is strengthening across the regions surveyed, with the United States and Europe contributing most of the upward pressure, while Asia‑Pacific remains a drag despite some improvement in India.