Emerging Markets
Manufacturers have enjoyed stronger demand from emerging nations such as China and Brazilbefore recent concerns about the European and U.S. economies raised the risk of a global slowdown.
Peoria, Illinois-based Caterpillar, the world’s largest construction- and mining-equipment maker, posted increased profits and sales in the second quarter, largely due to growth overseas, the company said July 22.
“China is doing a good job of balancing growth and inflation, and our expectations for China remain positive,” Chief Executive Officer Douglas Oberhelman said in the statement. “While we’ve seen some softening of growth in China, dealer deliveries to end users were up in the second quarter of 2011 compared with the second quarter of last year.”
The drop in the value of the dollar is one reason for optimism. A weaker dollar benefits American companies by making their products more attractive to buyers overseas. The dollar decreased 7.9 percent in the 12 months ended in July against a weighted basket of currencies from the country’s biggest trading partners.
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