The October Rouse Value Index for used equipment prices decreased to 45.0, down 0.6 percent from September values, following five consecutive months of declines primarily driven by weaker recoveries observed in auction transactions. While there has been some softness into the second half of 2015, the October Rouse Value Index remains 4 percent higher than the prior peak period of 43.3 in April 2007 and 51.7 percent higher than the prior trough period of 29.7 in June 20090.
October auction sales of rental and construction equipment tracked by Rouse averaged 5.1 percent lower than Rouse September forced liquidation values. Despite a stabilizing trend in October, this marks the seventh consecutive month of declining auction recoveries. Rouse attributes these declines to a combination of relative year-over-year increase in volume, equipment coming out of the oil and gas markets with heavier use than comparable equipment from the construction end markets, and weaker international demand coupled with lower purchasing power as a result of the stronger U.S. dollar.
During August, achieved rental rates, as measured by the Rouse Rate Index, increased 0.2 percent on average for the rental companies participating in the Souse Analytics Rental Metrics Benchmark Service.
For the latest Rouse report, go to: http://www.rouseservices.com/RentalReport/Rouse%20Rental%20Report%20-%20November%202015.pdf