Collapse In Global Growth Indicator - Caterpillar Sales Continue To Plummet !
Originally Posted by Zerohedge
Caterpillar [NYSE:CAT] is the world’s leading manufacturer of mining and construction equipment. It leads the pack in everything from diesel and gas engines, to electric locomotives.
Its industry dominance explains why it currently sits on net assets of US$89 billion. That makes Caterpillar’s retail performance a fairly strong indicator of global demand.
What does this have to do with the global economy?
We have been covering the ongoing collapse in global manufacturing as tracked by Caterpillar retail sales for so long that there is nothing much to add.
Below we show the latest monthly data from CAT which is once again in negative territory across the board, but more importantly, the global headline retail drop (down another 11% in August) has been contracting for 33 consecutive months! This is not a recession; in fact the nearly 3 year constant contraction - the longest negative stretch in company history - is beyond what most economists would deem a depression.
Perhaps CAT should come up with a new economic term to describe the true state of global manufacturing.