European equipment market to see slow recovery

Figures in the company's mid-year review represent a downgrade from predictions made earlier in the year, which pointed to a +7% rise in sales.

Off-Highway Research managing director David Phillips said, "The recovery in many markets has been much weaker than was anticipated in March and April. Italy, France, Spain and the UK have not have recovered as fast as we expected. "I think the root of the problem is the lack of business confidence, and there is still that over hang of lots of new machines in the market that were built up in the boom years."

The strongest growth this year is expected to be in Germany, where equipment sales are seen rising +23% to 22790 machines. The smaller markets of Austria and Ireland are also forecast to enjoy double-digit rises in sales.

Most other markets in Europe are expected to see some growth, although Finland and Spain will be flat, and declines are forecast for Portugal and Italy. Of most concern is the -13% fall expected in the Italian market, which is expected to take volumes down to 13010 machines.

Stronger growth is forecast next year, when Off-Highway Research sees the European equipment market climbing a further +12% to 100434 machines. However, it will still be a far cry from 2007, the height of the boom, when the European market topped-out at more than 210000 units.