Caterpillar's Falling Backlog Raises Concerns over Demand

Caterpillar Inc.'s stock fell to its lowest price since June as the company reported a shrinking order backlog in the third quarter, indicating a slowdown in demand for its machinery. Despite beating analyst estimates with higher prices and strong sales, the $1.9 billion year-on-year decline in backlog raises concerns about economic headwinds impacting the company's sales growth. Dealer inventories continued to grow while orders declined 15% YoY, pointing to a potential slowdown in sales and earnings growth for the fourth quarter. Caterpillar's shares dropped 5.5% following the news.