Deere Rental Rates Climb

John Deere's top executive says he sees signs of resurgence in construction and other industrial sectors despite a shaky economy. Samuel Allen, chairman and CEO of John Deere parent Deere & Co., said rental rates for equipment are steadily climbing from their lows of 2008 and 2009, a leading indicator that contractors are ready to buy. "Construction is starting to make a comeback," he said.

Equipment makers such as John Deere and Caterpillar Inc. are often bellwethers for the economy, and Allen said various industries are finally starting to resume making purchases.

"There's been good improvement this year and last year," Allen said. "Things are improving."

However, residential construction continues to struggle, with an annual pace of just 571,000 homes in August, 2011, according to federal data. Housing starts during the month were 5.7 percent below August 2010.

He said fuel efficiency among John Deere tractors and equipment is improving with industry demands.