The ‘general business (climate) index’ of the agricultural machinery industry in Europe has “continued to deteriorate significantly”.
That’s according to CEMA – the association that represents European (agricultural) machinery manufacturers. The observation was noted in its July bulletin.
According to the body, all segments are affected (except lawn, garden and municipal equipment). As a result of the “renewed sharp deterioration”, it says that both current business levels and future expectations are now “negative for the first time since 2016”.
A spokesperson explained: “Manufacturers’ high order volumes, from the strong order intake in the past, have apparently shrunk to a level where the recent order declines cannot be counterbalanced anymore.”
CEMA’s most recent survey apparently confirms that “dealer stocks are at comparatively high levels for both new and old machines – across almost all markets”. It says that this is most evident in the UK, followed by Germany.
The spokesperson continued: “Survey participants consider the UK to be the country with the worst prospects. The confidence level for Germany is low as well.
“As positive exceptions, a clear majority of survey participants expect turnover increases in France, Spain, Italy and Switzerland. However, new orders for France and Italy seem less promising than in recent months. Additionally, local manufacturers do not rate their business to be favourable anymore.
“The further development of the general business climate might, among other factors, depend on whether growth rates in these markets can be maintained beyond the next six months. In any case, nearly every other company already plans to reduce its temporary employment contracts.”
Where does the data come from?
This data comes from CEMA’s Business Barometer. It’s a monthly survey of representatives from the European agricultural machinery manufacturing industry; it’s been running since 2008.
The survey covers most major equipment sectors – from tractors to municipal equipment. The target group (of respondents) comprises 140 senior managers from nine countries.