Sales of construction equipment boomed in September with a nearly 30 percent increase – the highest September total since 2006 – market analyst EDA reported. EDA tracks financed sales/leases of equipment based on Uniform Commercial Code lien filings. The 9,698 units of construction equipment sold in September represented a sharp increase from the 7,489 units sold in September 2015.
The EDA sales figures don’t include cash sales, but are considered a good indicator of economic activity. They continue to show good news in a time of uncertainty and mixed economic indicators. For the first three quarters of 2016, 83,017 units of new construction equipment were sold in the U.S., up 10.3 percent from the same period in 2015. Third-quarter sales of 25,868 units were up 8.6 percent from 2015, the strongest Q3 showing since 2007.
“These figures show many buyers are willing to spend on new construction equipment,” said IronDirect President Tim Frank. “We know there is apprehension and uncertainty in the market. Our IronDirect equipment purchase and management platform takes the risk and uncertainty out of adding new or used units to the fleet.”
The September 2016 sales figure was the highest September total since 2006, when 10,633 units were sold, according to EDA. Sales of used equipment in September stood at 9,326 units, a 16 percent increase from September 2015. For the first three quarters of 2016, used equipment sales (72,296 units) were up 3.3 percent from the same period in 2015.
The $863.2 billion in construction spending during the first three quarters of 2016 is 4.4 percent higher than in the same period of 2015, the U.S. Census Bureau reported. Spending in September was at an annualized rate of $1.15 trillion, down 0.2 percent from September 2015 and 0.4 percent lower than August 2016, the Census Bureau said. Residential construction and highway construction were up in September, but overall spending on private and public construction was down 0.2 percent and 0.9 percent, respectively. It was the first year-over-year decline in spending since July 2011.
Joe Hanneman, Director of Industry Engagement for IronDirect.