Document: 2018-10_CEMA_Business_Barometer_Report_.pdf

The general business climate index of the agricultural machinery industry in Europe is gradually losing ground after having reached a record peak at the beginning of this year. Current business remains quite stable, but future expectations are becoming more cautious.

In comparison to other segments, the tractor industry evaluates its business climate below average. For livestock equipment and transportation current business continues to run very well, although livestock is the segment with the highest share of manufacturers expecting declining orders.

In the last month, order intake from Europe seems to have lost some of its dynamic, especially in the segment of tractors. Among the major European markets, the expectations for France and Spain have continued to improve. Germany and Italy have regained some stability after a temporary loss of confidence. By contrast, the outlook for all Scandinavia remains weak. In addition, the participants’ prospects for Belgium and the Netherlands, as well as for the CIS countries, have continued to deteriorate significantly.

The CIS countries also show the highest increase in dealer stock levels for new machines. Regarding used machines, dealers seem to build up high stock levels across all segments in nearly all major European markets, especially in France. 

Barometer October 2018