According to the latest update to the CEMA Business Climate Index, the ag equipment industry in Europe has continued its downward slide in the area of deep recession. In January, the index decreased from –48 to –50 points (on a scale of –100 to +100). More than half of survey participants consider the current business situation to be unfavorable.

The survey confirms dealers are not able to pass on their numerous orders to the end customers. According to the survey, dealer stocks are in most European markets significantly higher than in 2019, which went down in history due to high dealer stock levels.

For Western Europe and the Nordic countries, the confidence levels are not as negative as for Central and Eastern Europe. One exception is Germany, for which the overall confidence is also very weak (only 14% expect growth in this market while more than 60% expect a significant decline).

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