Wednesday, October 30, 2013
Are the Machines Going to Rise?
Industrial machinery has applications across nearly every industry. Major manufacturers like Caterpillar (CAT), Cummins (CMI), Deere & Co. (DE) and Joy Global (JOY) supply machinery and equipment to corporations around the world, and their sales data is an interesting indicator of where the global economy is headed.
Latest sales data from manufacturers and dealers of industrial machinery indicates that emerging economies, especially China, may not be growing as rapidly as they were back in 2010 and 2011. As demand in emergent markets slows down, dealers and distributors of industrial machinery have reported lower sales and a build-up of unsold inventory since the end of 2012. For example, Caterpillar dealers recently reported 30% lower sales year-over-year for the third quarter of fiscal 2013 (3QFY13). Read More: CAT