The general business climate index for the European ag equipment industry held its first significant upward trend in December since the sharp declines in the course of the Russian war against Ukraine. The index held last month's reading of 30, on a scale of –100 to +100.
"Growth prospects have improved the most for livestock equipment and are currently lowest for lawn, garden and municipal equipment. Supply constraints continue to challenge the production of tractors and harvesting equipment, while manufacturers in many other segments of the industry seem increasingly able to realize their orders," the report said.
"At the same time, the expectation for the coming order intake, an indicator which does not feed into the general Business Climate Index and which had been predominantly negative in recent months, has further improved significantly."
Respondents in almost every European market were expecting revenue growth in the first half of 2023. Dealers' new and used equipment inventory remained low across Europe.
45% of respondents to the climax index survey considered their current business good or very good. Only 12% expected revenue to decrease over the next 6 months. The majority (74%) said they plan to keep their current employee levels unchanged, while 23% plan to increase their workforce.