CEMA Business Barometer falls again by 6 points in August

 

The downward trend for the agricultural machinery sector in Europe is thus gaining ground. The CEMA business climate index has declined for seven months in a row. Current levels shows that a majority is expecting sales to continue to shrink in the months ahead. In addition, more and more entrepreneurs are dissatisfied with their current business.

In particular, business leaders in Germany, the biggest production site for ag machinery in Europe, are less optimistic. Only one in five companies believes their situation to be ‘good’. At the same time, turnover expectations from companies located in Spain and the UK improved further.

Contrary to the current trend, manufacturers of livestock equipment still report good order levels and display much higher levels of optimism than the rest of the industry.

For the entire industry, average orders on hand decreased to just two months, a value that is three weeks shorter when compared to the production capacity registered last year. Only 13% of the interviewees reported their order stock to exceed 3 months, compared to the 26% who did so last summer.

Turnover for machinery (average value) on the European markets declined by 5% in July, and new orders decreased between 5-10%.

Only the UK and Spain expect growth and are recovering from low levels. The other European markets are expected to perform weaker in the coming months. Perspectives in the CIS region are very poor, as uncertainty about the consequences of trade sanction persists.