Dive Brief:

• Machinery manufacturer Deere and Company announced an additional 180 indefinite layoffs at its Davenport, IA, and East Moline, IL, plants — partly due to an unexpected slump in construction sales.

• Ken Golden, a spokesman for Deere, said the company had predicted combine sales would be down, but hadn't anticipated the slump in the construction sector. "We thought construction would be up, but that hasn't happened, yet," he said.

• Currently, about 1,500 manufacturing employees have been laid off by Deere worldwide. In January, the company said it planned to lay off more than 900 employees in both Iowa and Illinois locations, and then announced an additional 160 layoffs earlier this summer.

Dive Insight:

Bob Pilone, the president of a company that manufactures parts for Deere's construction and agriculture divisions, said he had expected the construction industry to grow and help boost sales, not the other way around.

He added that in 2009, his business and Deere saw significant hits during the construction industry's downturn, "but, then it rebound and we had our record year ... So it is cyclical."

Construction is in the midst of a slow and steady recovery, which has disappointed some professionals who hoped for a rapid surge in activity and spending.

But Tuesday's construction spending report, which found spending rose 0.7% to $1.08 trillion — the highest level since May 2008 — could signal builders are starting to feel more comfortable about the strength of the industry. And that means good news for equipment manufacturers like Deere and Caterpillar, which has also recently seen construction orders pull down profits.