The general business climate index of the agricultural machinery industry in Europe is in negative range for the second time in a row. In July, both the evaluation of the current business and the future expectations, became negative for the first time since 2016. In August, contrary to future expectations, current business stabilized slightly again.
Based on the strong order intake in the past, the volume of orders is still high (corresponding to a production period of 2.9 months). However, a significant slowdown in incoming orders is expected. Only 14% of the companies foresee their order intake to grow within the coming 6 months.
As positive exceptions, from where again still a majority of survey participants expect turnover increases, remain France, Switzerland, Italy and Spain. The further development of the general business climate in Europe might, among others, depend on whether growth rates in these markets can be maintained beyond the next 6 months.
