Key Insight

Capital is already pricing the physical-constraints story more aggressively than the output data is yet confirming, and the gap between the two is the defining feature of the regime shift.

Generated by Claude on Apr 16, 2026

Hard constraints returning as economic bottlenecks

Tracking whether physical scarcity — energy, materials, grid equipment, and construction capacity — is binding on growth. The late 20th century trained people t

Updated 3 days ago.

Exclude COVID

Demand

Manufacturing Production Index

Broad industrial output — the primary driver of electricity, materials, and infrastructure demand.

▼ -0.1% YoY

98.64Index

Trend YoY growth is -0.1%, slowing by 3 bps/year over the last 25Y. Deviations have remained above trend for 18 consecutive periods. Latest: +1.4%, 1.5 pp above trend, a 0.56σ deviation. At current levels, YoY would fall to +0.6% by Jul '26 as comparisons tighten.

Level

YoY %

y = 0.7% 3 bps/yr · t

Deviation from trend

Total Construction Spending

Monthly pace of all U.S. construction — the dollar volume of physical buildout.

▲ +7.4% YoY

$2.2T

Trend YoY growth is +7.4%, accelerating by 24 bps/year over the last 25Y. Deviations have remained below trend for 25 consecutive periods. Latest: -1.5%, 8.9 pp below trend, a 1.4σ deviation. The latest YoY reading is boosted by 6.6 pp due to an easy comparison base from May '25.

Level

YoY %

y = 1.4% + 24 bps/yr · t

Deviation from trend

U.S. Infrastructure ETF (PAVE)

Market pricing of companies that build roads, bridges, power grids, and data centers.

▲ +28.3% YoY

$57.2

Trend YoY growth is +28.3%, accelerating by 2.4 pp/year over the last 8Y. Deviations have remained above trend for 101 consecutive periods. Latest: +28.6%, 39 bps above trend, a 0.05σ deviation. The latest YoY reading is boosted by 4.7 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 8.4% + 2.4 pp/yr · t

Deviation from trend

Critical Materials

Copper Miners ETF (COPX)

Copper is the metal of electrification — every EV, transformer, and data center needs it.

▲ +41.3% YoY

$76.7

Trend YoY growth is +41.3%, accelerating by 3.7 pp/year over the last 9Y. Deviations have remained above trend for 152 consecutive periods. Latest: +69.4%, 28.2 pp above trend, a 1.2σ deviation. The latest YoY reading is boosted by 36.9 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 7.5% + 3.7 pp/yr · t

Deviation from trend

Lithium & Battery Tech ETF (LIT)

Battery storage is the binding constraint on intermittent renewables and grid flexibility.

▲ +17.6% YoY

$76.5

Trend YoY growth is +17.6%, slowing by 90 bps/year over the last 9Y. Deviations have remained above trend for 228 consecutive periods. Latest: +93.9%, 76.3 pp above trend, a 3.2σ deviation. The latest YoY reading is boosted by 21.5 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 25.6% 90 bps/yr · t

Deviation from trend

Industrial Metals Fund (DBB)

Broad basket of aluminum, copper, and zinc — tracks aggregate materials scarcity.

▲ +12.0% YoY

$24.0

Trend YoY growth is +12.0%, accelerating by 79 bps/year over the last 9Y. Deviations have remained above trend for 150 consecutive periods. Latest: +26.9%, 14.9 pp above trend, a 1.8σ deviation. The latest YoY reading is boosted by 11.8 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 4.9% + 79 bps/yr · t

Deviation from trend

Grid & Equipment

Eaton Corp

Largest electrical equipment manufacturer — rising price signals power distribution demand outpacing supply.

▲ +36.7% YoY

$398.5

Trend YoY growth is +36.7%, accelerating by 2.4 pp/year over the last 9Y. Deviations have remained below trend for 39 consecutive periods. Latest: +11.3%, 25.4 pp below trend, a 2.2σ deviation. The latest YoY reading is boosted by 20.2 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 14.9% + 2.4 pp/yr · t

Deviation from trend

Quanta Services

Largest U.S. power infrastructure contractor — order book reflects grid buildout pipeline.

▲ +68.3% YoY

$668.3

Trend YoY growth is +68.3%, accelerating by 6.0 pp/year over the last 9Y. Deviations have remained above trend for 99 consecutive periods. Latest: +73.1%, 4.8 pp above trend, a 0.22σ deviation. The latest YoY reading is boosted by 15.5 pp due to an easy comparison base from Jul '25.

Level

YoY %

y = 14.6% + 6.0 pp/yr · t

Deviation from trend

Iron & Steel Production Index

Steel is the backbone of all physical infrastructure — tracks domestic production capacity.

▲ +1.7% YoY

111.7Index

Trend YoY growth is +1.7%, accelerating by 3 bps/year over the last 25Y. Deviations have remained above trend for 14 consecutive periods. Latest: +5.5%, 3.9 pp above trend, a 0.54σ deviation.

Level

YoY %

y = 0.9% + 3 bps/yr · t

Deviation from trend

Capacity

Capacity Utilization: Manufacturing

How much of existing factory capacity is in use — above 80% signals tightness and investment pressure.

▲ +0.3% YoY

75.6%

Trend YoY growth is +0.3%, accelerating by 3.4 pp/year over the last 25Y. Deviations have remained below trend for 11 consecutive periods. Latest: +0.2%, 9 bps below trend, a 0.04σ deviation. The latest YoY reading is boosted by 89 bps due to an easy comparison base from May '25.

Level

YoY Change (bps)

y = −0.6% + 3 bps/yr · t

Deviation from trend

Nonresidential Construction Spending

Commercial and industrial building pace — the supply response to physical bottlenecks.

▲ +7.2% YoY

$1.3T

Trend YoY growth is +7.2%, accelerating by 19 bps/year over the last 23Y. Deviations have remained below trend for 22 consecutive periods. Latest: -3.8%, 11.0 pp below trend, a 1.2σ deviation. The latest YoY reading is boosted by 4.1 pp due to an easy comparison base from May '25. At current levels, YoY would rise to -2.6% by Jul '26 as comparisons ease.

Level

YoY %

y = 2.8% + 19 bps/yr · t

Deviation from trend