The CEMA Business Climate Index for the European ag equipment industry fell again in its August update after reaching negative territory in the previous month for the first time since early 2020. In August, the index fell from –7 point to –22 points, one of the sharpest declines in the history of the survey.
The report stated the following:
After order backlogs had peaked at the beginning of the year, the volume of orders has seen a repeated significant reduction and is now corresponding to a production period of 4.4 months, which is still high in a long-term comparison, but substantially lower than at any time in the past two years. For every second manufacturer, the turnover from the order backlog reduction still ensures a stagnating or even increasing turnover for the for the current year.
Some 41% of respondents considered their current business conditions to be unfavorable and or very unfavorable, up from 33% in July and 29% in July. Another 46% expected their net revenue for the next 6 months to decrease, up from 34% who said the same in July and 29% in June.