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.”