Mood across machinery industry is ‘negative for second time in a row’
The ‘general business climate index’ across the agricultural machinery industry in Europe is negative for the second time in a row.
That’s according to CEMA – the association of European (agricultural) machinery manufacturers.
In July, evaluations of current business and future expectations were both negative for the first time since 2016. However, during this month (August) the evaluation of current business levels has stabilised slightly – contrary to expectations.
Based on the “strong order intake in the past”, CEMA says that the volume of orders is still high (corresponding to a production period of 2.9 months). However, a significant slowdown in incoming orders is expected.
Only 14% of companies surveyed forecast an increase in order intakes within the next six months.
Across Europe the notable (positive) exceptions are France, Switzerland, Italy and Spain. In these countries, a majority of survey participants expect turnover increases.
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.
Falling sales in the US
Meanwhile, last month (July) saw decreases in new (self-propelled) combine harvester and tractor sales across the US, compared to the same month of last year.
That’s according to the Association of Equipment Manufacturers (AEM) in North America.Also Read: Tractor and machinery sales fall in the US
Curt Blades, AEM’s senior vice president of agricultural services, said: “AEM is committed to advocating for pro-growth trade policies and the end to retaliatory tariffs.”