Equipment Orders Remain Positive

U.S. Construction Machinery New Orders were up 13.6% in April from the previous year. Residential construction and rising business-to-business spending are expected to help contribute to ongoing positivity for the market. Farm machinery sales in the U.S. were also up in April with demand for equipment expected to continue increasing as consumers begin eating out again, driving restaurants’ need for food supplies.

Demand was up in Europe, as well, for farm equipment and forestry machinery. Production for these machines rose 11.3% in April from 1 year ago, and a rise in the Europe Business Confidence Index is expected to bode well for production.

READ MORE: Heavy Equipment Demand Stays Strong in Second Quarter 2021 


View the corresponding Equipment Market Outlook charts for more data

NOTE: All data for charts supplied by ITR Economics

April 2021 Equipment Market Outlook [return to nav]

Industry-leading economic firm ITR Economics provides these monthly heavy-duty equipment market trends to help OEMs stay up to date and gain more knowledge and insights to help them make better decisions.

The April 2021 outlook reports a rise in U.S. farm machinery and equipment shipments, and construction machinery new orders. All-in-all, it looks like growth and recovery is on the way for both the U.S. and Europe.

Europe Agriculture and Farm Machinery Production [return to nav]
  • Europe Agricultural and Forestry Machinery Production during the 12 months through April was up 11.3% from 1 year ago.
  • Rise in the Europe Business Confidence Index bodes well for annual Production rise this year.
    Europe Agriculture Machinery Production
China Diesel Bus Production [return to nav]
  • China Large Diesel Bus Production during the 12 months through April totaled 19.2 thousand units and was down 35.2% from 1 year ago.
  • Annual Production moved lower in April. Declining Production is likely tied to an increasing deployment of electric busses in China, which currently leads the world in the adoption of e-buses.
    China Large Diesel Bus Production
U.S. Industrial Production [return to nav]
  • U.S. Industrial Production during the 3 months through May was up 11.8% from the same 3 months 1 year ago.
  • The U.S. ISM PMI (Purchasing Managers Index) reached a cyclical peak in April, suggesting the quarterly Production growth rate could peak around late this year.
Us Industrial Production




U.S. OECD Leading Indicator [return to nav]
  • The U.S. OECD Leading Indicator monthly rate-of-change peaked in April after a year of rise.
  • The April peak is likely to hold and suggests an early-2022 business cycle peak for U.S. Industrial Production.
    Us Leading Indindicator
U.S. Private Nonresidential New Construction [return to nav]
  • U.S. Private Nonresidential Construction during the three months through April totaled $108.4 billion, down 7.0% from 1 year ago.
  • The Construction Backlog Indicator, the number of nonresidential construction projects started, and macroeconomic indicators suggest that we will not see significant upward momentum in Construction in the coming quarters.
Us Private Nonresidential New


U.S. Construction Machinery, New Orders [return to nav]
  • U.S. Construction Machinery New Orders during the 12 months through April totaled $37.3 billion, up 13.6% from 1 year ago.
  • Rise in the residential construction market, rising business-to-business spending, and inflationary pressures will drive rise in New Orders this year.
    Us Construction Machinery New Orders
U.S. Farm Machinery Production [return to nav]
  • U.S. Farm Machinery and Equipment Shipments during the 12 months through April totaled $32.4 billion, up 11.7% from 1 year ago.
  • Quarterly Retail Sales for U.S. Food Services and Drinking Places are at a record high, up 69.6% from the same period 1 year ago. As consumers return to eating out, demand for restaurant foods is increasing. Rising demand is a positive sign for farming activity and, consequently, demand for farm equipment.
Us Farm Machinery

U.S. Total Public New Construction [return to nav]
  • Annual U.S. Total Public Construction declined for the fourth consecutive month in April, coming in at $349.3 billion; this was 2.4% higher than the year-ago level.
  • Surging construction material prices may inflate dollar-denominated Construction this year, but we expect Construction decline to persist during at least the near term.
    Us Total Public New Construction
North American Rotary Rig Count [return to nav]
  • The North American Rotary Rig Count annual average was at 430 in May, down 54.2% from 1 year ago.
  • Oil prices will likely incentivize the reactivation of existing rigs this year.
    North American Rotary Rig Count
U.S. Defense Industry, New Orders [return to nav]
  • U.S. Defense Capital Goods New Orders during the 12 months through April totaled $137.0 billion, down 8.9% from 1 year ago.
  • Changes to the U.S. defense budget and expected industrial sector growth this year bode well for New Orders rise in the coming quarters.
    Us Defense Capital
U.S. Heavy-Duty Truck Production [return to nav]

    • Annual U.S. Heavy-Duty Truck Production transitioned to an accelerating growth trend in May, up 9.4% from 1 year ago.
    • A shortage of trained truck drivers may hinder demand for new trucks in the near term, but booming business-to-business and retail spending indicate significant demand for transportation services in the coming quarters.
    Us Heavy Duty Trucks


    Europe Leading Indicator [return to nav]
    • The Europe Leading Indicator monthly rate-of-change ticked down in May.
    • The April peak in the Indicator foreshadows an early-2022 growth-rate peak for Europe Industrial Production.
      Europe Leading Indicator
    Germany Industrial Production [return to nav]
    • Germany Industrial Production during the three months through April was up 10.2% from 1 year ago.
    • The Germany Purchasing Managers Index for Manufacturing signals growth in the industrial sector for at least the next two to three quarters.
      Germany Industrial Production