Defense, aerospace and construction equipment manufacturers are the three major industries that make up the industrial sector of the market. Government supported initiatives involving defense accounts represent a large portion of this sector. As a result this sector can be affected by government budget cuts.
As aerospace and construction equipment manufacturers tend to be large exporters, the global economy and its growth have a large influence on their value. This can be beneficial when the U.S. economy is underperforming versus the global economy as exporters are less reliant on the domestic market.