Caterpillar Retail Orders Suffer Second Biggest Plunge Since Financial Crisis, Now Posting 44 Consecutive Monthly Declines

CAT sales LT

Caterpillar Retail Orders Suffer Second Biggest Plunge Since Financial Crisis:

While the relentless decline in Caterpillar retail sales has been duly noted here every month for nearly 4 years, now posting 44 consecutive declines, the latest, July data was downright depressionary.

According to the company, in the latest month – just when China was supposed to be rebounding and the US recovery getting “stronger” – demand took another sharp leg lower, as follows:

Read moreCaterpillar Retail Orders Suffer Second Biggest Plunge Since Financial Crisis, Now Posting 44 Consecutive Monthly Declines

Caterpillar Retail Sales Decline For 43 Consecutive Months

Caterpillar Retail Sales Decline For 43 Consecutive Months:

There was a time when Caterpillar was considered a key bellwether for trends in global heavy industries, and thus a proxy for the manufacturing sector. However, over the past 3 years that has not been the case for one simple reason: if one looks only at trends revealed by CAT’s retail sales the global economy has been mired not in a recession but an unprecedented depression, one which has now lasted some 43 months. That’s how long CAT has gone without a single positive month in global retail sales, well over double the duration of the acute collapse in demand following the financial crisis.

CAT LT sales

Since there is little we can add to this story that we haven’t sasid for the past 42 months in our monthly monitoring of demand for CAT products, we will just lay out the breakdown:

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Caterpillar Retail Sales Fall For Record 41 Consecutive Months

Caterpillar Retail Sales Fall For Record 41 Consecutive Months:

For Caterpillar, the great recession was bad, for about 19 months. In May 2010, after declining sharply for just under two years, CAT posted it first positive global retail sales comps and never looked back… until December 2012 when comp sales once again turned negative and have been negative ever since. For the past 41 months!

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World’s Leading Heavy Equipment Manufacturer Suffers Longest Losing Streak Ever

CAT total

World’s Leading Heavy Equipment Manufacturer Suffers Longest Losing Streak Ever:

Caterpillar is the world’s premier heavy equipment manufacturer, from tractors to locomotives to engines of every shape and size.  As such, Caterpillar is used as a litmus test for the global economy.  More sales by Caterpillar means more people around the world using heavy equipment to produce and build.  Less sales means falling production and crashing demand globally.  Currently, Caterpillar is suffering from one of the longest losing streaks in the company’s history – over 37 straight months of significant year over year retail losses.  That is three years of solid decline.  The mainstream has attempted to pin the lack of demand for Caterpillar machinery on the dramatic fall in oil prices (approximately 50% decline in the past six months), however, oil prices do not explain the three year span of negative year over year profits.  The ONLY thing that explains Caterpillar’s troubles is a crisis level collapse in global demand.  Period.  Caterpillar is a signal, like the Baltic Dry Index, and like oil to some extent.  As the current bear market rally in equities tops out and fizzles over the next two weeks, keep in mind the fundamentals.  A system that requires exponential growth to survive cannot last long under the weight of collapsing demand.  There is nothing that anyone, including central banks, can do to avoid this reality…

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Manufacturing Depression Enters Uncharted Territory: Caterpillar Retail Sales Have Never Been Worse

CAT length of depression

Manufacturing Depression Enters Uncharted Territory: Caterpillar Retail Sales Have Never Been Worse:

Moments ago Caterpillar reported its latest monthly retail sales statistics and the numbers have never been worse.

Not only is the fourth, feeble and final dead CAT bounce in US sales officially over, with December US retail sales tumbling -10% Y/Y, after “only” a -5% decline in November and hugging the flatline for the past few months, but sales elsewhere around the globe were a complete debacle: Asia/Pacific (mostly China) was down -21%, EAME dropping -12%, and Latin America (i.e. Brazil) continuing its free fall dropping by -36%, but global retail sales just posted a massive -16% drop in the past month, tied for the worst annual decline since the financial crisis.

Read moreManufacturing Depression Enters Uncharted Territory: Caterpillar Retail Sales Have Never Been Worse

For Caterpillar, The Depression Just Turned Three: CAT Hasn’t Had A Sales Increase In 36 Consecutive Months

For Caterpillar, The Depression Just Turned Three: CAT Hasn’t Had A Sales Increase In 36 Consecutive Months:

For CAT the global manufacturing depression just turned 3 years old as the company has now suffered through 36 consecutive months of declining annual retail sales – something unprecedented in company history, and set to surpass the “only” 19 months of declining during the great financial crisis by a factor of two!

For Caterpillar The Depression Has Never Been Worse… But It Has A Cunning Plan How To Deal With It

For Caterpillar The Depression Has Never Been Worse… But It Has A Cunning Plan How To Deal With It:

CAT has now suffered a record 35 months, or nearly 3 years, of consecutive declining annual retail sales – something unprecedented in company history! But fear not, the company has a cunning plan how to stem the bleeding…