Construction equipment shipments from US factories have been approximately stable for five months through October signaling that the bottom of the recession for the equipment market is near. After a 55% fall in shipments since early 2006, another 5% decline is expected by spring. This final phase of the recession results from the pause in housing late in 2009 when the extension of the homebuyer tax credit was delayed and the slowdown in the flow of shovel ready stimulus spending.
Shipments have averaged 6% higher than orders since May. Although factory and dealer inventories are declining rapidly, the equipment inventory/sales ratio is still double the level typical of a normal market environment. |
news1