Despite an EPS beat, Parker Hannifin (PH) orders fell by even greater margins over the last quarter. Overseas orders -10%. North American orders -6%. Aerospace +22% but that is on a 12 month rolling basis and more driven by anticipation of 737MAX returning to service and the long lead times involved. In short, manufacturing is bound to get weaker than it already is. Caterpillar results already portended this. PH confirms it.
CM has been saying for almost two decades that PH orders are a great global barometer of industrial health. PH supplies all the monster tier 1 industrial companies like Boeing and Caterpillar. It is like a major hardware store for major industrials. PH is a world leader in pumps, hydraulics, pneumatics, linear drives, vacuums, seals, gaskets, valves, hoses and pretty much any other widget that is used in modern machinery.
Worse to come from global industrial indicators.