CEMA BUSINESS BAROMETER RESULTS SHOW NO POSITIVE EXPECTATION...

CEMA (European Agricultural Machinery Association) Business Barometer Results of June...

According to the results of the sectoral Business Barometer survey held in June conducted by the CEMA on a monthly basis, the overall business environment in Europe remains negative.

As in 2012, the business index continued to decline sharply and for the first time since January 2017, the index fell to the negative section of the band and reached -11.

According to the survey which was answered by 140 senior executives in 9 of CEMA member countries, all segments except lawn and horticultural equipment and public procurement in Europe started to be affected by the contraction and the pessimism in the expectations for order purchase in the next six months and the negative picture of the current business environment level stated that it has reached such high levels for the first time since 2016.

Evaluations within the scope of the survey pointed out that despite the high volumes from past order purchases, decreases in final orders can no longer be compensated and that the current business for European industrialists is increasingly affected.

Survey results show that dealer stocks in all markets are quite high for both new and used equipment. According to these values, the United Kingdom and Germany rank the first two.

While respondents kept their expectations for the United Kingdom to a minimum, the level of confidence for Germany was low. As a positive exception, the majority of survey respondents expect turnover growth in France, Spain, Italy and Switzerland but new orders for France and Italy seem less promising than in recent months. In addition, the fact that local producers are no longer able to evaluate their current business positively is another important factor in the survey results.

According to the results of the survey, participants think that the overall business environment development depends on sustaining growth rates in these markets for the next 6 months. In contrast, continental European industrialists plan to reduce temporary staff in all circumstances.

Source: TARMAKBİR Weekly Bulletin