US set for earnings roadblock as growth falters US manufacturers are set to report their slowest growth in earnings since 2009, hit by the European crisis and a slowdown in emerging economies. Analysts are forecasting that industrial companies will fall well short of last year's growth rates reported in the first quarter of 2012 despite being the fastest-growing sector in the US for second-quarter earnings, according to S&P Capital IQ. Manufacturing has been one of the brighter areas of the US economy, but last week the US Institute for Supply Management survey showed its weakest reading for the industry since July 2009. Scott Davis, an analyst at Barclays Capital, said: "We've hit a roadblock. Something happened in May that caused a real slowdown in spending. US businesses were prepared for weak demand in Europe, but there have been recent signs that the region has been worse than expected, with confidence falling even in Germany, its strongest economy. Meanwhile, emerging economies that have seen slower growth, including China, India and Brazil, have failed to pick up as some analysts had hoped. The coming US reporting season, which begins on Monday with earnings from aluminium producer Alcoa after the market closes, will be closely watched for signs that companies are being forced to scale back the projections for growth they set out earlier in the year. Many manufacturing executives say they have become more cautious about the outlook. Dave Cote, chief executive of Honeywell, which makes aircraft systems and other components, told the Financial Times: "We are being much more careful on hiring and investment around the world, because this is not a time to be out in front with your commitments. We are well-prepared for another global recession, if we get one. Boeing, the US's biggest exporter, warned last week that it expected sluggish growth in the global economy for at least the next 18 months. "We're looking at a world economy where ... we slog through the situation here in Europe and then once you get into the 2014 timeframe and beyond, you see more normal economic growth," said Randy Tinseth, Boeing's vice-president of marketing. What we are experiencing now will be normal for the next one to two years. The outlook varies between sectors, with aerospace and the booming US car market among the more robust segments. One of the weaker areas is mining equipment, due to the industry's heavy reliance on Chinese demand. Sales growth at Caterpillar, the world's biggest maker of earthmoving equipment, has slowed sharply in recent months. Global demand for the manufacturer's products grew 11 per cent in May from last year, but year-on-year sales growth has slowed every month this year.