The overall business climate index for the agricultural machinery industry in Europe fell to its lowest level since the market crash following COVID-19, according to the June Business Barometer of the CEMA European Agricultural Machinery Association. It is noteworthy that the index, which decreased from 11 to 1 point (between -100 and +100) in June, is still at a balanced level despite this decrease.
Despite some expansion on the supply side in recent months, it is stated that confidence levels have decreased due to uncertainties in the markets. Along with the deterioration in the evaluations of current jobs, sector representatives have further lowered their expectations for the future.
Survey results point to significant differences between product segments and regions. It is stated that the climate in the markets for livestock and harvesting equipment is still at a positive level, while it has shifted to negative territory for tractors and tillage groups. In addition, despite the positive turnover expectations for some large markets such as France and Germany, it is stated that industry representatives have a significant confidence problem for the Italian and Polish markets.
Despite the decrease in orders, survey respondents expect a slight increase in their commercial revenues (due to high turnover sales at the beginning of the year) for the year.