SP Global - Industry Top Trends Midyear, 2023

The Industry Top Trends Midyear 2023 report provides a comprehensive summary of S&P Global Ratings' evolving views on various industries in Asia-Pacific, Europe, and North America. The report focuses on what has changed, what to look out for, and the key risks to their baseline scenarios. The report covers around 5,000 rated corporate and infrastructure entities. The main themes discussed in the report include the impact of the pandemic on industries, inflation and interest rates, labor costs, supply chain pressures, and environmental regulations. The report highlights the risks associated with weaker credits, particularly those rated 'B' or below, and the challenges of refinancing and interest costs. The report also provides insights into specific industries, such as the aerospace and defense industry in North America, which is expected to see sustained upturns in defense spending due to the ongoing war in Ukraine and heightened tensions between the U.S. and China. In Europe, the war has spiked demand for products like battlefield radar, unmanned aerial vehicles, and munitions. The report also discusses the early days of credit considerations of artificial intelligence (AI) and its potential long-term implications. In media, it is still too early to tell how AI will reshape the sector, but it could enhance efficiency and reduce costs over the long term. Overall, the report provides valuable insights into the current state of various industries and their credit outlook, highlighting the challenges and opportunities that lie ahead.