The general business climate for the agricultural machinery industry is not yet showing any signs of a recovery, and over half of the businesses that took part in the latest CEMA (European Agricultural Machinery Industry) Business Barometer on-line survey label the current climate as unfavourable. Another 8% reckon it is ‘very unfavourable’, and just 29% are satisfied with the current situation. When looking at expectations for the next six months, almost half (46%) of all businesses expect a further decrease in turnover, while 37% expect it to remain unchanged. Only 17% expect to be able to increase performance during the second half of this year. Only the Scandinavian countries maintain a moderately positive outlook. All other countries, including France and Spain, expect a decrease of their companies’ turnover. Surprisingly, the UK reaches the bottom of the ranking, behind Germany, Poland and Austria – which CEMA reckons could reflect feelings of post-Brexit uncertainty. In terms of current dealer stock, companies report high stock levels of new machines when compared to the average of the past three years. Also, there is a notable reduction in new order volumes from the EU market, especially for tractors and harvesting equipment. The survey provides a good indication of employment plans and shows 25% of businesses expect to have to cut staff levels during the next six months, while 53% are making plans to reduce the number of temporary employees.
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