No Dead CAT Recovery On This Sales Chart (Where Caterpillar Asia Sales Post Biggest Drop Since November 2009)

Tyler Durden's picture

There was some hope two months ago when CAT global retail sales posted a modest uptick between February and May, rising from a recent low of -13% Y/Y to "only" declining -7%. Alas, it turned out to be nothing but a dead CAT bounce, as a month ago hopes the global recovery would continue were dashed after the -7% global dealer retail sales dipped once again to -8%. Moments ago, the downward trend continued its acceleration, when the company reported global retail sales at -9%. And while it was not all bad news, with the US retail sales drop slowing and in July posting an almost flat print at -1%, it was the key market of Asia/Pacific (read China) that plunged by 28% from past year, far worse than the 21% drop in June, and the ugliest Y/Y comp since November 2009. Any day now, though, the third cat bounce will take place.

The chart below of retail sales broken down by geographic bucket speaks for itself.

Source: the Company