Document: 2019-07_CEMA_Business_Barometer_Report_.pdf

The general business climate index of the agricultural machinery industry in Europe has continued to deteriorate significantly. This time all segments are affected (except lawn, garden and municipal equipment). As a result of the renewed sharp deterioration, both the evaluation of the current business and the future expectations are now negative for the first time since 2016.

The manufacturers’ high order volumes from the strong order intake in the past, have apparently shrunk to a level where the recent order declines cannot be counterbalanced anymore and are increasingly affecting current business.

As confirmed again by the survey, the dealer stocks are at comparatively high levels for both new and old machines across almost all markets. In this respect, the UK ranks far above all, followed by Germany.

Accordingly, survey participants consider the UK to be the country with the worst prospects. The confidence level for Germany is low as well. As positive exceptions, a clear majority of survey participants expect turnover increases in France, Spain, Italy and Switzerland. However, new orders for France and Italy seem less promising than in recent months. Additionally, the local manufacturers do not rate their business to be favorable anymore.

The further development of the general business climate might, among others, depend on whether growth rates in these markets can be maintained beyond the next 6 months. In any case, nearly every other company already plans to reduce its temporary employment contracts.

Barometer 07 2019