Auction Results Soft, Used Equipment Values Slip
The April Rouse Value Index for used equipment prices dipped 0.4%, to 43.2, from March, the twelfth consecutive month of decline. April auction sales also dropped, according to the Rouse Rental Report, averaging 9.3% lower than the previous month.
The current Rouse Value Index is now nearly 8% below the mid-2015 peak, according to the report, and below the April 2007 pre-recession peak index number of 43.3. Still, the index remains much higher than the June 2009 trough, when it bottomed-out at 29.7.
You can find a copy of this month's Rouse Rental Report here. The report categorizes auction results as "soft" across core rental and heavy equipment categories. The data was generated from sales of about 3,750 pieces of equipment sold at 40 separate auctions. It states that the small- and mid-sized earthmoving equipment and aerial equipment prevalent in rental fleets averaged 3.8% lower than March's Forced Liquidation Values. Large earth moving and mining equipment averaged 12.2% lower than the March FLV values.
The Rouse Rate Index uses data from companies participating in the company's Rental Metrics Benchmark Service. Rental rates decreased 0.4% on average, compared to January, and down 0.3% compared to February 2015.
Physical utilization improved 1.9% over January but is 2% lower than February 2015.
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