Caterpillar just knocked the cover off the ball, beating estimates on both the top and bottom line.
You really should take a read in the earnings report, for a really fantastic overview of the global economy, its strength, and the risks ahead.
For example, this:
- We are concerned that central banks in the developed economies may begin tightening economic policies too quickly. Modest interest rate increases in both Australia and Canada, two of the stronger developed economies, quickly caused some weakness in construction indicators. The larger, more fragile economies would likely react even more unfavorably to significant economic tightening.
Regarding the big growth market in Asia:
- We expect economic growth in Asia/Pacific will slow from 8.5 per cent in 2010 to 7.5 per cent in 2011. China has been tightening policies, and this will account for much of the slowing. India and Indonesia, two large economies in the region, are both expected to grow almost as fast as in 2010. We expect continued construction growth in most countries in the Asia/Pacific region.
And on the US:
- Recent data suggest the U.S. economic recovery is strengthening, and we believe the U.S. Federal Reserve’s program to expand its balance sheet will further benefit growth. We project the economy will grow about 3.5 per cent in 2011, which would be the best rate of growth since 2004.