Business climate may have already reached its peak

 

The general business climate index of the agricultural machinery industry in Europe seems to have reached its peak (but remains on a high level). Especially future expectations have become somewhat more cautious. Incoming orders from both Europe and outside of Europe have lost considerable momentum.

 

Compared to all segments, the business climate for arable equipment has deteriorated the most. Both turnover expectations and current business evaluations within that segment are now quite below the industry average. In the face of falling milk prices, the manufacturers of livestock equipment and transportation equipment also have lost some confidence, but current business is still running well.

 

The regional breakdown shows once again for each single European market a majority of survey participants expecting a turnover increase. However, important markets such as Italy and the UK seem to cool down, together with the markets in the Scandinavian, the CIS and most Eastern European countries,. Poland and Germany remain stable at the top of the country ranking, but these markets also might have already reached their peak.