The industrial industry is vital to the global economy. Companies in the sector manufacture and distribute building products and machinery, provide commercial and professional services, and provide transportation servicesLucknow Stock. Given the vital role industrial companies play in supporting the global economy, many rely on the economy to drive growthSimla Stock. So, when the economy slows, it can affect industrial stocks.Bangalore Wealth Management

However, that's not the case for all industrial stocks. The sector also includes companies that operate in the defense and aerospace industry and those that provide waste management, which are relatively recession-proof. Because of that, investors shouldn't completely dismiss all industrial stocks when concerns about a recession arise.

We've seen how the economy and geopolitics affected the sector in 2022. On one hand, with inflation spiking, the Federal Reserve has started to raise interest rates to cool off the economy, which could affect economically sensitive industrial stocks. Given Russia's invasion of Ukraine, however, defense stocks should benefit from increased defense spending.