The American construction equipment maker, Caterpillar, is confident that the Chinese government’s measures will help the country’s economy rebound.
Kevin Thieneman, country manager of Caterpillar China, India and ASEAN, declared that he is positive that the Chinese government will take the necessary measures to help the country’s economy begin to grow again in the fourth quarter of 2012 and in 2013.
In the second quarter China’s economy increased 7.6% year-on-year, down from an increase of 8.1% in the first quarter, marking the 6th consecutive quarter of decline and biggest fall since the first quarter in 2009.
“With China’s interest rate cuts and the reduction in the reserve ratio, as well as the recent announcement of stimulating infrastructure investment, we are very confident that we’ll see a soft landing in China,” Thieneman said.
To revive the economy the Chinese government adopted several measures, including subsidizing energy-saving household electrical appliances, including lowering banks’ reserve ratio to boost lending, and speeding up approval for important construction projects.
Caterpillar expected 2012 to bring them record high sales as in 2011, but the economic fall caught them with tooled up factories and so the company was forced to divert its finished goods inventory outside China.