European machinery confidence improves as UK outlook strengthens
Business confidence in the European agricultural machinery industry has improved for the first time in several months, although the sector remains in negative territory.
The latest Cema business barometer shows the general business climate index rising from -19 to -14 points in August, following a sharp deterioration that had pushed the industry back into recession after more than a year of improving conditions.
The recovery has been driven entirely by improved expectations for the next six months. Manufacturers’ assessments of current business conditions remain weak.
Cema says the recent downturn reflected a marked deterioration in both current business assessments and turnover expectations. The latest improvement suggests that manufacturers are becoming more optimistic about the prospects for the market, despite continuing challenging trading conditions.
The UK and Ireland now lead the European confidence ranking, alongside Scandinavia, providing a more positive outlook for machinery suppliers serving the British market.
However, the picture remains uneven across Europe. Negative expectations have been confirmed in major markets including Poland and France, underlining the continuing weakness in parts of the continental machinery market.
The improved outlook comes as UK tractor registrations have continued to increase during 2026. For the European agricultural machinery industry, the latest figures provide tentative evidence that the current market downturn may be approaching a turning point, although manufacturers remain cautious about current demand and order activity.
The August survey indicates that expectations are improving faster than current business conditions, suggesting that any broader recovery in machinery sales and production is likely to take time to emerge.
Cema’s business climate index is based on a survey of leading agricultural machinery manufacturers across Europe and provides an indicator of both current market conditions and expectations for the coming months.
Read the Cema August 2026 business barometer
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