By Ben Klayman
CHICAGO (Reuters) - Illinois Tool Works Inc's (ITW.N: Quote, Profile, Research, Stock Buzz) chief executive said on Tuesday that weakness in the U.S. general industrial economy was spreading, but so far not beyond the borders of this country.
"We're seeing obviously the weakness in the general industrial economy spreading, so we're not seeing any great tail winds," David Speer said at the Reuters Manufacturing Summit in Chicago.
"I, frankly at this point, don't see any catalysts that would suggest there's going to be any near-term change," he added.
ITW, a diversified manufacturer that makes everything from fasteners to food-service and welding equipment to countertop materials and other products, derives 13 percent to 14 percent of its revenue from the struggling automotive, residential housing and appliance sectors.
Speer called North America "the more challenging economic environment" but said U.S. weakness had not spread overseas.
"I haven't seen any indications of that yet," he said, adding he expects growth in Europe this year after a banner 2007, while Asia continues to be very strong.
In the United States, Speer said the auto sector is getting close to the bottom of its weak demand, while the housing sector is "obviously still seeking a bottom."
"I don't see a quick recovery in housing," he said. "It's probably a late '09 story before we see any significant improvement in the (housing) starts data, given the levels of inventory and the challenging subprime market." Continued...
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