The Agrievolution business climate index rises by 7 points with the new survey edition - a fact that might be surprising at first glance.
But the improvement only comes from the anticipation of a better business in the next six months, while the current business is evaluated at a similarly low level than in the second half 2014. On a global average, 30% of the agricultural machinery manufacturers regard their situation to be „good", while 40% describe it as unfavourable.
The turnover development in the first 3 months was a clear decline. The estimation for global sales is between -5 and -10%. But regional differences are well pronounced - a more dynamic development is anticipated for the Asian markets, mainly China, but also Turkey.
Europe and the USA are facing the most pronounced recession trends. South America did not take part in this survey, but would probably show similar results.
The optimism for a more lively demand in the short future comes from an improved order intake situation in several countries, but this upward trends is not predominant yet in America and Europe.
A certain easing of the previous financing restrictions is one of the core results of this survey.
Government support is generally considered to be positive, although there are voices that ask for more activities here, e.g. by the Asian manufacturers to help improving their position on the world markets. Also from the farmers´ perspective, the subsidies still play a major role, with consequent complaints when programs are phased out how it seems to be the case in Turkey now.
The general mood of the farmers is worse than in 2014 due to the lower commodity prices and thus profitability. This might not change in the short-term and will rather slow down demand for new machines.
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