Is the capital goods sector on the recovery path as inflation eases?

Revenue growth estimates have moderated post Q2 but the bottom may be close

Can the capital goods sector finally move into a meaningful upcycle as inflation eases and global supply chains adjust to the disruptions caused by the past three years? After the July-September quarter (Q2) results, analysts are suggesting that electrical capital goods businesses like Siemens, ABB India, Thermax, GE T&D, Hitachi Energy, Bluestar, and Voltas will see an 11 per cent revenue CAGR over the next three years, rather than 16 per cent anticipated after Q1 (April-June quarter) results.

This is based on a Q2 slowdown in order inflows. However, this can also be the bottom of the cycle or