A lack of confidence in non-residential construction activity slowed down equipment manufacturers' sales in the third quarter, renewing some analysts' fears the U.S. economy is suffering from a "craneless" recovery, or a scant amount of available infrastructure work requiring heavy earthmoving and lifting machines. Leading indicators, however, show that non-residential activity may soon pick up.
Equipment market leader Caterpillar Inc. is experiencing what it describes as a "painful" year, posting third-quarter revenue of $13.4 billion, down 18% over the same period last year, driven largely by mining companies holding off on major purchases. As such, Cat has lowered its full-year revenue outlook to $55 billion from $56 million to $58 billion, reflecting an overall 17% dip, with construction sales down about 5%. The firm expects revenue next year to benefit from global growth but still fall flat against 2013 sales.