The general business climate index for the agricultural machinery industry in Europe has continued its upward path, after its return to positive territory last month for the first time since mid-2023. In May, the index increased from +2 points to +7 points (on a scale of -100 to +100).
Following the improved evaluations of the (still negative) current business in recent months, it is this time once again increased overall turnover expectations that have driven the upturn in the general business climate.
After the volume of orders has been significantly reduced in 2023 and 2024, it now corresponds to a production period of 3.3 months, which is the lowest value since 2020 at this point of the year, but still slightly above average compared to the typical years before 2020.
The direct effects of the current US economic and tariff policy on the business and decisions of manufacturers in Europe are, according to industry representatives, low or still difficult to assess. Two thirds of survey participants do not yet see any effects on their order intake. Not even 10% of the respondents (slightly more for parts) consider it as likely to move production from Europe to the USA or to reorient their exports due to tariffs.
