Although the construction equipment market remains very depressed activity perked up in September. Orders from US factories jumped nearly 50% to the highest level in a year. Shipments increased 4% and factory inventory fell marginally. The pickup is in domestic sales since imports fell much more sharply than exports. However, prices continued to slide lower in a weak market with excess inventory.

Other heavy equipment markets also had a strong month. Shipment rose for farm, mining, industrial and engines and construction equipment shipments from US factories are forecast to average slightly below the September level through next summer and then rise more than 25% through the end of 2011. This still leaves shipments more than 40% below the peak level in …