Caterpillar is the litmus test for the global economy, and business is booming

Turns out the 92-year-old construction company is a great indicator of global market strength -- and they just reported a 25% spike in quarterly revenue.

October 25, 2017

Caterpillar, the world’s biggest maker of construction and mining equipment, reported a 25% spike in quarterly revenue yesterday — and US markets went through the roof.

The DOW Jones bumped up 168 points, and the S&P 500 hit its highest level in a decade.

Because, as it turns out, it’s not just companies like Google making big splashes in the global economy — 92-year-old construction companies like Caterpillar are a great indicator of global market strength.

Surprised? So were we

See, unlike some of the huge tech companies making headlines these days, a boom in the construction market is an indicator that more housing, companies, and infrastructure are going up — all hallmarks of a healthy economy.

And it’s not just US markets seeing an uptick in yellow tape — Caterpillar’s construction sales jumped 22% in the Middle East, 24% in Latin America, and 31% in the Asia Pacific region (thanks to a growing market in China).

And Q4’s showing no signs of slowing

Caterpillar also bumped up its end-of-year predictions, forecasting an overall 20% increase in revenues for its construction business.

Excellent news for pretty much everyone, because, as Bloomberg puts it: “As Caterpillar Inc. goes, so goes the world economy.”

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