Europe Multi Industry What Global Capacity Utilization and Leasing Data tell us about Multi Industry

Equity Research 20 August 2026 | 3:24PM BST

What Global Capacity Utilization and Leasing Data tell us about Multi-Industry

Daniela Costa | Goldman Sachs International

Christian Hinderaker, CFA | Goldman Sachs International We see Capacity Utilization as one of the leading indicators for capex. As such, Ope Otaniyi we look at the various data points relevant to the Multi-Industry sector across | Goldman Sachs International the US (July), EU (3Q 2026) and China (2Q 2026). In the latest Capacity Utilization print, sequentially, we see the US and Europe remaining flat, whereas Aditya Agarwal | China is materially lower. US is the only region at median levels, while EU and Goldman Sachs India SPL China are materially below. We view the development in China cautiously for the sector, especially given the rise in manufacturing inventories above through-cycle levels in the region in our recent inventory analysis (here).

We also look at the US Equipment Leasing and Financing Momentum Index by end-market, as well as job market trends. This month, we highlight in particular the improvement in leasing and financing momentum in Transportation Equipment, which reads well for Trucks in general. By contrast, Agricultural Machinery shows the largest sequential fall.

In the US, industrial Capacity Utilization remains at 24-year median levels. By industry, it improved the most on a sequential basis (in July vs. June) in Iron and Steel Products, Aerospace, and Machinery. In contrast, Food, Chemicals and Mining (ex-O&G) saw a sequential drop in utilization. For our coverage, we see positive sequential trends in Electric Equipment as well as Machinery, with both remaining above median.

In the EU, industrial Capacity Utilization has been well below 24-year median levels over the last 14 quarters. By industry, it improved the most on a sequential basis in 3Q 2026 vs. 2Q 2026 in Basic Metals, Paper Products and Electrical Equipment, while categories that saw the highest decline in utilization included Refined Petroleum, Trailers/Semi-Trailers and Pharma. For our coverage, similar to the US, we see positive sequential trends in Electrical Equipment as well as Machinery, despite both staying below median.

In China, industrial Capacity Utilization remains below median levels, and it was sequentially lower in 2Q 2026. By industry, there has been a sequential improvement

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Goldman Sachs Europe Multi-Industry

vs. 1Q26 in Computer Equipment, Non-Metallic Mineral Products and Universal/General Equipment, while Coal Mining, Chemical Products and Production Power, Gas & Water saw the highest decline in utilization. For our coverage, this read is overall negative both in terms of local demand and the risk of competition in Europe/other EMs (see our July note on China competition risk here).

In terms of the US Equipment Leasing and Financing Momentum Index, trends in Aug-26 vs. Jul-26 have improved only in Transportation Equipment (+ve Daimler Trucks, Traton, Volvo, Alstom, Siemens), while falling in Agricultural Machinery (-ve CNH), Energy & Electrical Equipment (-ve ABB, Siemens, Schneider, Legrand, Prysmian) and Industrial Equipment.

In the US, Non-Farm Payroll Employment trends in July-26 vs. July-25 have shown improvement in Non-Resi Construction, Electrical Equipment and Fabricated Metal Mfg, while slowing the most in Resi Construction, Truck Transportation (-ve Daimler, Traton, Volvo) and Motor Vehicles and Parts (-ve Sandvik and SKF). In the US, Average Weekly Hours of Employees on Private Non-Farm Payroll in July-26 vs. June-26 have improved slightly in Mining & Logging and Construction, while there has been no major movement in other…