The business climate for the European agricultural machinery industry continues to show cautious signs of recovery, according to the latest CEMA Business Barometer. CEMA is the European Agricultural Machinery Association and a member of Agrievolution Alliance.
In its April report, CEMA said fewer industry representatives expect sales to shrink in the coming six months. However, current business is still seen as rather negative, especially by French and Belgian manufacturers.
In contrast to previous months, March order intake remained “flat” and reached 2014 levels. At the same time, overall sales expectations remain down as a result of the lower order levels observed during the previous months.
The slight upward trend in several European markets such as Poland and Italy does not extend to Germany and France – the two biggest European markets.
For both markets, only one out of five respondents expects an increase for their business in the months ahead, with an average expectation of around -10 percent. The market outlook is particularly negative for the CIS region, where 3 out of 4 companies surveyed expect a considerable drop in sales.
Used machinery stocks are high and are having an adverse effect on sales of new equipment in France and Germany. French and Belgian companies also reported that dealers and customers are encountering difficulties in obtaining credit.
Read the April 2015 CEMA Business Barometer Report