By Hal Weitzman in Chicago and Ed Crooks in New York

North American industrial companies are predicting the US will be one of their big growth markets in 2012 for the first time since the start of the financial crisis, reflecting rising demand for everything from excavators to truck parts.

Caterpillar, the largest maker of earthmoving equipment, brushed off concerns about a possible slowdown in the global economy and said it expected real US construction spending to increase this year for the first time since 2004.

The upturn was helping it to experience its ?best growth since Harry Truman was president?, said Mike DeWalt, head of investor relations.

While Caterpillar echoed concerns that policymakers could derail the recovery by prematurely tightening economic policies, the company said it expected the US economy to pick up steam this year and added that ?the risk of a worldwide recession has diminished significantly?.

The vote of confidence in the US was underscored by Eaton, the manufacturer of industrial equipment and components for trucks and aircraft, which said it expected its markets to grow faster in the US than in the rest of the world for the first time since the mid-2000s.

Sandy Cutler, Eaton?s chief executive, said he expected economic growth would still be faster in emerging economies such as China and India. But Eaton?s sales had been hit by the slowdown in Chinese construction, he said, while US markets were picking up.

?Most people would say their view of the US economy is a little better than it was three months ago,? he said. ?Consumers are spending money, non-residential construction is starting to rise, the car market is picking up, and exports and manufacturing capacity utilisation are up, creating demand for trucks and factory automation equipment.?

Official figures also suggested a robust outlook for US capital spending. New orders for durable goods orders rose 3 per cent last month, following an upwardly revised 4.3 per cent increase in November, according to the commerce department, beating analysts? average forecast of a 2 per cent increase.

Caterpillar said it would increase its capital expenditure this year to $4bn from $3bn in 2011 to take advantage of what it believes is a multiyear economic up-cycle.

? The Financial Times Limited 2012