Caterpillar (CAT) released its monthly machinery orders for the month of January and the results weren’t especially encouraging. As shown in the chart below, the three month moving average of year/year monthly sales fell 14%. While orders haven’t especially been strong lately (negative for 26 straight months now), the trend has been lower in recent months. January marked the third straight month that y/y sales accelerated to the downside, and the current level of negative 14% is the most negative reading in nearly five years (February 2010).
When Caterpillar releases monthly machinery sales, it also breaks out the figures by geographical region. During the month of January, y/y sales fell in every region. This was the first time that all four regions (Asia, EAME, Latin America, and North America) saw negative sales growth since December 2013.