Despite the considerable easing of raw materials and componentry from the supply side, European machinery manufacturers have said that uncertainties are increasing within the European market.

And as a result, confidence levels are declining with manufacturers, according to the latest market trends report CEMA, the association representing the European agricultural machinery industry.

Each month, CEMA carries out a survey within the European agricultural machinery industry with coverage of all major sectors to look at the current and future business situation.

Regional breakdown

The regional breakdown in the association’s April report shows that some of the large European markets such as France, Germany, Italy, Spain and Poland are losing further momentum.

The report added that current dealer stocks of both new and used machines are still relatively low across Europe, but have now been noticeably restocked in some countries, particularly in Poland and France.

April report

The April report shows that the general business climate index for the agricultural machinery industry in Europe has left its first significant upward path since the sharp declines in the course of the Russian war against Ukraine, but is still at a relatively good level.

In April, the index decreased from 24 to 16 points (on a scale of -100 to +100). In March, the index decreased from a high of 36 to 24 points.

After the deterioration in evaluations for the current business, industry representatives have now also downgraded their future expectations.

Only 41% of manufacturers expect business to grow in the short term, down from 48% two months ago.

On the flip side, 21% of manufacturers expect their businesses to decrease within the next six months, up from 12% two months ago.

Meanwhile, 26% of manufacturers plan to cut down on temporary staff in the near future, with just 10% planning to increase.