The chief executive officer of John Deere & Co. said recently that he hasn't noticed an improvement in the construction and farm equipment industry that may be tied to any upturn the nation's economy has made.
A recent report from Bloomberg noted that CEO Samuel Allen said he does not expect a recovery in the industry until 2010. Allen noted that while some countries are seeing improvement, nations like Russia are not. Recently, the company reported that sales of equipment are down 21 percent for the year.
"So far we've not seen it, especially in our construction and forestry business, which is very housing-dependent," Allen told Bloomberg Television.
Recently, however, an IHS Global Insight report indicated the company expects residential construction spending to expand by 4.8 percent during the fourth quarter of this year. Overall for 2010, IHS expects construction spending to be down by 4 percent, mostly because commercial construction is still lagging.
For 2009, IHS expects overall construction spending to be down by 12 percent, with spending on commercial construction down by an annual rate of 27.9 percent.
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