Business climate is slowing down after reaching its peak

The general business climate index of the agricultural machinery industry in Europe has declined further after reaching its peak. The current business seems to remain at a relatively high level, but future expectations have become more cautious. A significant deterioration can be particularly observed in the segment of arable equipment.

However, the industry´s forecast regarding its turnover development is overall still positive. On average, the companies expect an increase by 5% in 2018 and 4% in 2019 (for arable equipment respectively 4% and 3%).

Looking to the market side, the survey further solidifies the picture that the European market has already reached its peak. According to the survey participants, the order intake from Europe has remained strong in the last month, but the confidence regarding turnover expectations in the coming six months has decreased for all single European countries.