There appears to be a lifting of the spirits within the European machinery trade as the latest business barometer from CEMA records a slight uptick after numerous months of gloom and despondency.
The organisation notes that the general business climate index for the agricultural machinery industry in Europe is improving but continues to be quite negative in outlook.
CEMA compiles a monthly index on a scale of -100 to +100, and in December the needle increased from -43 point to -37 points, suggesting that the low point of this recession has been passed.
Rising trend
Overall, future expectations with regard to both incoming orders and turnover have improved once again.
The rise in expectations for turnover during the coming six months is the fourth in a row and is held to the main reason for the improvements in the general business climate although current business evaluations are basically continuing close to record low levels.
On the the market side, the confidence index for almost all European areas has improved, with some countries back in or close to positive territory for the first time for several months now, although we are not told which areas.
The survey participants were also likely encouraged by the fact that the rate of incoming orders had improved slightly over expectations.
CEMA looks ahead
The manufacturers participating in the survey seem to be rather more confident with regard to the coming year.
For the full year of 2025, the survey participants expect their company’s turnover to slightly increase on by around 3% on average.
Employment prospects within the industry are still not looking particularly bright with 25% of companies expecting a decrease in their regular staff levels and 46% in their temporary employees.
The balance between temporary and full time staff can indicate the level of confidence so a forecast increase of 11% in temporary employees as opposed to 8% in the regular workforce suggests that any shortfall in workers will be made up by those not on a contract.
