The general Business Climate Index for the Agricultural Machinery Industry in Europe has further increased after having reached a positive range for the first time since mid-2019. In November 2020, the index is at +14 points (on a scale of –100 to +100). This time the increase of the total index is primarily the result of an improvement in the evaluation of the current business. Meanwhile, only 15% of the survey participants consider their current business to be unfavorable.
According to the survey, restrictions in the course of COVID-19 seem nearly not nonexistent anymore. In addition, high levels of turnover have already been secured for the coming months. The volume of orders correspondents currently to a production period of 3.1 months, which is the highest November value ever recorded within this survey. However, most companies are no longer expecting a further increase in incoming orders.
Broken down to segment level, there are currently only two exceptions with a negative business climate: lawn, garden and municipal equipment have not come out of the negative zone since the beginning of the year and livestock equipment has slipped back into the negative after some positive months.
With regard to the European market side, the turnover expectations of the survey participants have not further improved. For the major markets France, Germany and Italy can be seen good and stable confidence levels, but for several Eastern European markets, as well as for the UK, the expectations have become more negative again.