Austerity, China and a mining bust hitting the global economy
Caterpillar is the world's largest producer of global mining and construction equipment but it reported a drastic decline in sales in its latest numbers.
These are rolling 3 month sales, year-over-year.
China easing on infrastructure spending is the well-known story but LatAm is scaling way back and North America isn't immune. Governments are tightening their belts and attacking deficits rather than building infrastructure while companies outside of residential home construction remain reluctant to invest.
Sales have been struggling for years now. Markets are sanguine because of stability in Europe and hopes for growth in the US, but if you take that away, the global economy is in poor shape.
