Industrials will drive the comeback's next leg, economic forecaster Lakshman Achuthan predicts

Economic forecaster Lakshman Achuthan is delivering an encouraging outlook.

He finds a surge in commodity prices suggests the industrial space will lead the next leg of the recovery.

"[It] is really firing on all cylinders," the Economic Cycle Research Institute co-founder told CNBC's "Trading Nation" on Wednesday.

He builds his bullish case in a chart showing a spike in industrial commodity prices, which includes tallow and benzene, that started last Spring.

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"The readings that we're showing in this chart here are the strongest we've seen since the spring of 2018," said Achuthan. "So, we have a recovery that is going to continue."

Achuthan believes the trend confirms his thesis that it'll be the shortest U.S. economic recession on record.

"This is in line with a lot of other cyclical leading indicators of the industrial sector," he noted. "These industrial, mining and material stocks, that they are actually outperforming the overall S&P since the March trough, too." 

Early last month on "Trading Nation," Achuthan saw signs a sustainable stock market rally was underway based on his weekly leading index, which uses proprietary data to determine the market and economy's directions.

Since that forecast, the S&P has surged 11% to record levels. On Wednesday, the index closed at 3,478.73, an all-time high.

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