bbvista pp economic and industry analysis

Otherconsiderations otherconsiderations

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Unformatted text preview: xcel. Basic Industries /commodities Basic Industries /commodities oil industry, gold, aluminum and lumber industries. As the business cycle reaches its peak, prices rise in tandem with increased demand for goods and services. Companies that supply raw material to manufacturers see increased demand These industries are not adversely affected by higher inflation because inflation has little affect on their costs On the contrary they profit from increased demand and increase in prices of the end product. Consumer staples Consumer staples Food, beverages and pharmaceutical industries necessary products defensive industries Exporters Sales are affected by currency exchange rates low interest rates usually trigger a weaker currency which benefits exporters by making their products cheaper to over seas consumers. Other considerations Other considerations Construction industry does better in periods of low interest rates High interest rates therefore help the do­it –yourself industries A weaker US do...
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