Machinery sales: Inflation also hits the US and Europe

Interest rates held by governments slow down the agricultural machinery market. In the European Union, the business climate is the worst in two years.

The script is getting better, but it’s still not enough. The decision of European central banks and the US Federal Reserve (FED) to increase interest rates Containing inflation pays off, but it still has its costs.

The effects on productive activity are seen in the economic growth shown by countries, even with some recessionary effects.

In Europe, for example, the business climate in the agricultural machinery industry continued to decline sharply in July. It was after reaching negative territory in June for the first time since declining as a result of COVID-19.

After a work order backlog peaked at the start of the year, order volume fell dramatically to a two-year low.

To make matters worse, the short-term outlook is not rosy at all. he 60% from comp European Union They predicted that the amount of incoming orders would show a new low, as in the previous months.

For the time being, there is no longer any European market as the monthly survey conducted by CEMA, the entity that aggregates agricultural machinery manufacturers in Europe, shows expectations of a positive turnaround.

“So while the supply side of manufacturers continues to decline, doubts on the market side have definitely come to the fore.They warn the association.

See also  How does McDonald's research and innovate in the ingredients of its products?

in United StateAs the Fed recently raised the interest rate from 0.5% to 5% annually, which makes financing more expensive, the agricultural machinery market also suffers from this situation.

For the first six months of the year, sales of tractors in the United States declined -9.6%in a global context in which the dollar maintains some weakness against the euro, which makes commodity prices in favor of importers.

In the same trend, Brazil in the first five months of the year showed a decline in sales of tractors and combines -7.2%.

International analysts are confident that the European and American prescription against inflation will eventually bear fruit, as it does, although there is still time before it becomes final.


McQuinac is a media partner of AgroActiva . Find out the most impressive news of the mega-sample in our special coverage.
 click here

other columns