Caterpillar, the US-based maker of construction equipment and heavy-duty engines, issued a bleak prognosis for the US economy on Friday, saying that it was “near to, or even in, recession”.
The warning, which included a downward revision of 2007 earnings estimates and a sober outlook for the US market in 2008, helped propel a widespread slide on Wall Street on Friday. Caterpillar shares were 6 per cent lower at $73.03 by late afternoon.
