Indicators for a better business in the months ahead
The Agrievolution business climate index rises by 7 points with the new survey edition - a fact that
might be surprising at first glance. But the improvement only comes from the anticipation of a better
business in the next six months, while the current business is evaluated at a similarly low level than in
the second half 2014. On a global average, 30% of the agricultural machinery manufacturers regard their
situation to be „good“, while 40% describe it as unfavourable.
The turnover development in the first 3 months was a clear decline. The estimation for global sales is
between -5 and -10%. But regional differences are well pronounced – a more dynamic development is
anticipated for the Asian markets, mainly China, but also Turkey. Europe and the USA are facing the
most pronounced recession trends. South America did not take part in this survey, but would probably
show similar results.
The optimism for a more lively demand in the short future comes from an improved order intake
situation in several countries, but this upward trends is not predominant yet in America and Europe.
A certain easing of the previous financing restrictions is one of the core results of this survey.
Government support is generally considered to be positive, although there are voices that ask for more
activities here, e.g. by the Asian manufacturers to help improving their position on the world markets.
Also from the farmers´ perspective, the subsidies still play a major role, with consequent complaints
when programs are phased out how it seems to be the case in Turkey now.
The general mood of the farmers is worse than in 2014 due to the lower commodity prices and thus
profitability. This might not change in the short-term and will rather slow down demand for new machines.
Please click on the document below for further details.
