Is the US economy slowing? A strong US Dollar is a headwind for US industrial groups such as CAT, MMM, and GE. These 3 companies are regarded as gauge for the remaining market.
- Caterpillar is regarded as an economic indicator for the construction industry, mining, the energy sector and major infrastructure projects. At the beginning of the year, the company announced a downgrade of its earnings expectations for the current year. This was due to a slowdown in growth in China and higher costs.
- In April, industrial group 3M surprised investors with a reduction in profit forecasts for 2018. The manufacturer of adhesives for the automotive industry, grinding machines for craftsmen and post-its for office supplies is suffering from the punitive tariffs. Despite production facilities in the respective sales markets, much is still exported from the USA.
- General Electrics has fallen behind primarily because of its crisis-ridden power plant division. This forced the company to make massive job cuts. The new CEO hasn’t been with the company for a year and now has to achieve a turnaround within a very short space of time – a Herculean task.