The number of companies warning of a slowdown in China is growing, with both construction machinery company and chipmaker blaming weaker demand in the country for disappointing figures, a bad omen for the global economy.
“Sales in Asia/Pacific declined due to lower demand in China, partially offset by higher demand in a few other countries in the region,” Caterpillar said in its earnings press release. “Unfavorable currency impacts also contributed to the sales decline.”
Caterpillar, one of the largest equipment manufacturers in the world, is considered a bellwether for global trade given the company‘s exposure to overseas markets. Caterpillar gets 59 percent of its sales from outside of the U.S. and nearly a quarter of its revenue from the Asia Pacific region, according to figures form Goldman Sachs last year.