The general Business Climate Index for the Agricultural Machinery Industry in Europe has continued to increase strongly after having reached the positive range in October for the first time since mid-2019. In December 2020, the index is at +28 points (on a scale of -100 to +100).
Other than during previous upswing periods (e.g. in 2010 or 2017), this time the current business improvements do not lag behind improved future expectations, but almost the other way around. It rather appears that the industry is continuously adjusting its future expectations to a surprisingly well-performing current business. Meanwhile, only 14% of the survey participants consider their current business to be unfavorable, and only 18% expect a declining turnover in the coming 6 months.
With regard to the full year 2021, the European industry representatives forecast for their company a turnover increase of +4% (arithmetic mean) or +5% (median). 56% see a plus in the single-digit percentage range. The impetus for this positive development is expected to come from Western Europe, North America, and Oceania.
