Global Construction Equipment Manufacturers Face Mixed Outlook: S&P

Economic estimates call for continued slow recovery in 2013, resulting in modest growth in demand for construction equipment

After a fairly steady rebound for two years following the deep trough of 2009, construction equipment manufacturers are facing a mixed picture by region, Standard & Poor's Ratings Services said in a report published on RatingsDirect titled, "Global Construction Equipment Manufacturers Face Weakness In China And Risks Worldwide."

"Our baseline economic estimates call for the global economy to continue its slow recovery in 2013, which should support modest growth in demand for the construction equipment industry next year, but significant risks persist," said Standard & Poor's credit analyst Dan Picciotto. The economy remains fragile, with the potential for a sovereign crisis in Europe, further slowing of GDP growth in emerging markets (particularly China), and risks associated with the looming "fiscal cliff" in the U.S. at the end of 2012. Any of these factors could derail economic growth and general business confidence, which could result in skittishness about orders for durable goods, including construction equipment.

For more about S&P's outlook for global construction equipment manufacturers...