GOLDMAN: Here's What The Biggest Industrial Companies Are Telling Us About The Economy

According to a recent Business Insider study, Goldman Sachs ranked second among Wall Street's best equity research teams.

Goldman's industrials and materials analysts including Steve Song, Terry Darling, Robert Koot and John Marshall publish a weekly sector report that draws on exchanges with company management, talks with clients, and analysis of relevant macroeconomic factors including high energy prices.

What follows is an industry-by-industry roundup of the analysts' assessments based on the most up-to-date information.

The aerospace and defense sector expects deceleration in the US, but sees opportunities overseas

Following a strong earnings season, management in the aerospace sector is now warning of slower traffic and tougher sales comps, which signals near-term deceleration.

With defense, management teams have accepted budget declines.  They expect contractor revenues to decrease and cost reductions and changes aimed at improving efficiency are helping profit margins. There is however room for overseas growth.

"Investors saw positive news on the F-35 program this week, including a $16 bn order from Turkey for 100 units with the first two deliveries expected in 2015, and continued progress on flight tests. We do not expect any significant catalysts in Defense for next week."

Source: Goldman Sachs

Production cuts in the agribusiness sector have helped boost fertilizer and nitrogen prices

Spring demand has helped strengthen nitrogen prices. Mosaic Company led the group by a favorable solution to the permit dispute tied to its South Fort Meade mine. Meanwhile, Potash Corp. are Saskatchewan extending production cuts to to manage its excess supply.

Source: Goldman Sachs

Improving inventories and strong consumer demand should help drive 14.3 million in annualized US auto sales in February

Improving inventory levels at Toyota and Honda, and strong consumer demand have got Goldman analyst Patrick Archambuly to expect a February seasonally adjusted annual rate of 14.3 million, ahead of the January figure.

Source: Goldman Sachs

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