The Agrievolution business climate index turned back declining – although only slightly by 3 points, the decline illustrates that the global downturn of the sector is still not definitely bottomed out. Only manufacturers in China and India are in a remarkably good mood.
There is no clear future trend, at least not on a global scale. For example, compared to previous surveys the future expectations further improved in Western Europe, but sharply declined in Turkey. Taking the new orders as future indicators, these justify even less any positive outlook. Nearly 50% of the global agricultural machinery industry states that in the past 3 months, compared to the same period a year ago, volume of incoming orders on domestic market decreased.
At the same time, current situation is evaluated historically negative. On global average, 19% of the agricultural machinery companies regard their current business to be „good“, while 34% describe it as unfavourable. Especially in North and South America, namely the US and Brazil, current demand remains very weak.
The turnover development in the last 3 months was worst in Brazil, followed by the US. The best performing is reported from Russia, China and India. Also regarding government support, the Russian and Chinese survey participants were the most satisfied, whereas Brazilians and Turks considered it as very negative.
The general mood of the farmers is worse than in previous surveys 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.
