Earlier we mentioned Caterpillar as a good tell towards global infrascture spending. Base metal minder Rio Tinto is another one to watch, and it turns out the London-based company has just announced a 10% production rollback.
Telegraph: Rio Tinto chief executive Tom Albanese said the reduction in output from its mines in Western Australia would align production with lower demand from China in this quarter.
“We believe this will be a short, sharp slowdown in China, with demand rebounding over the course of 2009, as the fundamentals of Chinese economic growth remain sound,” he said.
Unlike CAT, Rio Tinto is actually holding up today. Whether it’s due to the China news — which many regard as totally non-news — or the fact that the company is dailing down its operations — is anyone’s guess.
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