Second quarter results for the world’s global industrial companies report strong sales growth. But because of several factors, industry analysts predict slower growth in the second half of 2011. Volatility in the price of raw materials and a slowing of new orders indicate that a slowdown for the industrial sector could be on its way. The U.S. debt crisis and economic difficulties in Europe and a slowdown in China have caused industrial producers to worry. VDMA, the German engineering federation, said plant and machinery orders slowed in June. Domestic orders dropped by 14%. “The decline of domestic orders can be explained by the exceptionally strong gain in the previous year but there are also first signs that the investment goods cycle in Germany and the euro-area member countries has become less dynamic,” said Olaf Wortman, VDM economist. JPMorgan’s global manufacturing purchasing managers’ index dropped to its lowest point since the start of the global recovery. (August 4, 2011)