Used equipment values decreased 1.0% in July, according to the August Rouse Rental Report. Auction results were also down in July, dropping 4.5%.
The report, published by Rouse Asset Services, states that for the month ending July 31, 2012, the Rouse Value Index of Orderly Liquidation Values (OLV) for used equipment across the fourteen major rental equipment categories decreased 1.0% compared to June values. For the six months ending July 31, 2012, average index values increased 3.3%. Three out of 14 category indices recorded one-month value increases ranging from 0.4% for loader-backhoes to 0.6% for light compaction equipment.
Meanwhile, July 2012 auction sales of rental and construction equipment averaged 4.5% less than Rouse June FLV values. Rouse recorded 1,054 units that sold at 11 separate auction sales conducted across North America. The units represented a combined FLV (as of July 31st) of $26.8 million and generated $25.6 million of gross auction proceeds.
Also in the report, May 2012 rental rates increased 0.8% relative to April 2012 for the rental companies participating in Rouse's Rental Metrics Benchmark Service. Rates increased 7.8% relative to May 2011. Rouse Analytics calculates rate change weighted by prior period activity in accordance with the ARA Rental Market Metrics standard.