Sales of construction equipment are performing better this year, but suppliers are taking a cautious approach to their full-year outlooks due to a slow mining sector, soft construction in Europe, China and Brazil, and less exploratory work in the oil patch.
“While economic conditions in the United States are modestly positive, the global economy remains relatively stagnant,” said Doug Oberhelman, Caterpillar Inc. chairman and CEO, in the company’s July 23 second-quarter earnings report. “Many of the key industries we serve remain weak, and we haven’t seen sustained signs of improvement.”