Farm Equipment Markets Sees Positive Signs

U.S. Farm Machinery and Equipment Supplies Shipments through October were down 3.9% from 1 year ago. However, shipments tentatively transitioned to a recovery trend and rising commodity prices bode well for a continued rise in shipments in the coming quarters.

Europe Agricultural and Forestry Machinery Production was also down from a year ago. Annual Production is rising, and some regions of Europe have increased food and beverage consumption which could be an area of opportunity.  

READ MORE: Heavy Equipment Markets are Down in 2020 and Hopes up for a Better 2021


View the corresponding Equipment Market Outlook charts for more data

NOTE: All data for charts supplied by ITR Economics

Europe Agriculture and Farm Machinery Production [return to nav]
  • Europe Agricultural and Forestry Machinery Production during the 12 months through October was down 6.5% from 1 year ago. Annual Production is generally rising from a low point in the second quarter of 2020.
  • Within the Europe, food and beverage consumption increased the most in the United Kingdom during the lockdowns of 2020. This may be an area of opportunity as lockdowns extend in the near term.

Europe Agriculture Machinery Production

China Diesel Bus Production [return to nav]
  • China Large Diesel Bus Production during the 12 months through October was down 29.0% compared to the year-ago level.
  • Expected recovery in the global macroeconomy in 2021 bodes well for recovery in Production in the new year.
China Large Diesel Bus Production
U.S. Industrial Production [return to nav]
  • U.S. Industrial Production during the 3 months through November was down 5.9% compared to the same period 1 year ago.
  • Expect U.S. Industrial Production to continue rising during the coming quarters.

Us Industrial Production



U.S. Leading Indicator [return to nav]
  • The Conference Board’s U.S. Leading Indicator rose in November.
  • 2021 industrial sector rise is suggested by rise in this and numerous other leading indicators, including the U.S. ISM PMI (Purchasing Managers Index) and U.S. Total Industry Utilization Rate.
Us Leading Indindicator

U.S. Private Nonresidential New Construction [return to nav]
  • U.S. Private Nonresidential New Construction during the 3 months through October totaled $120.2 billion, down 7.1% from the same period 1 year ago.
  • Construction typically lags the U.S. industrial economy by approximately 1 year. We expect the COVID-19 pandemic and related shutdowns to impact Construction in 2021, driving decline in this sector throughout the year.

Us Private Nonresidential New

U.S. Construction Machinery, New Orders [return to nav]
  • U.S. Construction Machinery New Orders during the 12 months through October were 9.1% below the year-ago level.
  • In the most recent elections, voters approved a record 94% of state and local ballot initiatives for transportation improvements, amounting to an overall countrywide commitment of $14 billion. This bodes well for construction in the coming years, and thus for cyclical rise in New Orders.

Us Construction Machinery New Orders

U.S. Farm Machinery Production [return to nav]
  • U.S. Farm Machinery and Equipment Supplies Shipments during the 12 months through October totaled $22.6 billion, down 3.9% from 1 year ago.
  • Shipments tentatively transitioned to a recovery trend. Rising commodities prices, including U.S. Soybeans Futures Prices, bode well for business cycle rise in Shipments in the coming quarters.
Us Farm Machinery
U.S. Total Public New Construction [return to nav]
  • U.S. Total Public New Construction during the 12 months through October totaled $347.7 billion, up 5.5% from 1 year ago. The annual growth rate is generally declining from a March 2020 peak of 8.6%.
  • Decline in the U.S. Institutional Architecture Billings Index suggests Construction will move along the back side of the business cycle in the coming quarters. 

Us Total Public New Construction

North American Rotary Rig Count [return to nav]
  • Germany Industrial Production during the 3 months through October was down 6.8% from the same 3 months of 2019. The quarterly rate-of-change is rising from a May 2020 low point.
  • Germany has extended lockdown restrictions through the winter holidays, posing a downside risk to this rising trend.

North American Rotary Rig Count


U.S. Defense Industry, New Orders [return to nav]
  •  U.S. Defense Capital Goods New Orders during the 12 months through October totaled $156.1 billion and were up 2.1% from 1 year ago.
  • Decline in the World Uncertainty Index suggests a diminished sense of urgency regarding defense; this may hinder New Orders in the near term.

Us Defense Capital

U.S. Heavy-Duty Truck Production [return to nav]
  • U.S. Heavy-Duty Truck Production during the 12 months through November was down 39.0% from 1 year ago.
  • Rising quarterly U..S Surface Trade with Canada and Mexico, and rise in the U.S. Business Confidence Index, suggests Production will begin recovering in the first half of 2021.

Us Heavy Duty Trucks






















Europe Leading Indicator [return to nav]
  • The Europe Leading Indicator ticked down slightly in November, likely due to new shutdown orders in several European countries.
  • While the tick-down in the Leading Indicator suggests that the current shutdowns may hinder recovery, our current analysis suggests that Phase A, Recovery, in Europe Industrial Production remains probable in early 2021. 
Europe Leading Indicator
Germany Industrial Production [return to nav]
  • Germany Industrial Production during the 3 months through October was down 6.8% from the same 3 months of 2019. The quarterly rate-of-change is rising from a May 2020 low point.
  • Germany has extended lockdown restrictions through the winter holidays, posing a downside risk to this rising trend.

Germany Industrial Production