Since peaking at the start of the year, the volume of machinery orders have followed a downward trajectory, as average lead times of 4.4 months are being quoted within the European market.

Based on current order intakes, 60% of European manufacturers expect a further decline in the months ahead, according to the latest market trends report from CEMA, the association representing the European agricultural machinery industry.

Each month, CEMA performs a survey within the European agricultural machinery industry, covering all major sectors, to establish the current and future business situation based on a number of subjects. The survey found that current lead times are still considered high by long-term comparison, but substantially lower than any time witnessed within the last two years.

August report

In August, the business climate index fell from -7 point to -22 points (on a scale of -100 to +100), one of the sharpest declines in the history of the survey. The July index decreased from one point to -7.

Only 18% of the manufacturers surveyed consider current business to be ‘very good’, while 37% consider it to be ‘good’, back from 20% and 43% respectively in July. Over the next six months, 22% of manufacturers expect turnover to increase, 33% expect it to go unchanged and 46% expect it to decrease.

Regarding the workforce, interestingly, 14% of companies vow to increase their workforce, 76% vow to maintain current numbers and 10% plan to reduce their workforce.