The general business climate index for the agricultural machinery industry in Europe has dropped slightly after its continuous rise into positive territory over the last months. In June, the index decreased from +7 points to +4 points (on a scale of -100 to +100).
The correction may indicate that the positive expectations still need to materialize in the order books of the manufacturers. For the full year of 2025, the survey participants expect their company's turnover to slightly increase on average (median and arithmetic mean +3%).
Broken down by segment, the business climate for tractors and harvesting equipment has deteriorated the most, especially with regard to the evaluation of the current business.
With a view to the European market side, the confidence index remains low for France, especially when broken down into the large segments of tractors, arable and harvesting equipment. Germany is not ranking particularly well for these segments either. By contrast, confidence remains strong for other important markets, with Poland, Spain and the UK leading the European market ranking.
The potential developments of the US economic and tariff policy are likely to have mostly indirect effects on the agricultural machinery industry in Europe, while the industry's direct exposure to the US is comparatively limited: 47% of manufacturers in Europe are active in the US market and the US share of these manufacturers' total turnover is on average 12%.
