Equipment Dealers Report Flat Sales in June

The mid-year Dealer Sentiment & Business Conditions Update from Ag Equipment Intelligence suggests a market that is not yet thriving.

Average dealer sales were reported flat year-over-year in June, falling from 2 percent growth in May. A net 13 percent of dealers missed their sales budgets in June vs. the net 6 percent in May.

A net 14 percent of dealers reported their new equipment inventories were “too high,” vs. 5 percent in May.

A net 25 percent of dealers reported their used equipment inventories were “too high,” similar to the previous month.

Overall, inventories have come down from 2016 levels.

Dealers reported new equipment pricing softening in June after several months of improvement.

Large tractor pricing was reported down 3 percent year-over-year vs. down 2 percent in May, and combine pricing was reported down 5 percent, also lower than last month.

The study’s Dealer Optimism Index, which measures sentiment among dealers compared to the prior month, dropped to negative 9 percent in June, down further from a reading of negative 2 percent in May. Dealer optimism has fallen in the last two months following a reading of 6 percent in April.

The Dealer Sentiment & Business Conditions Update is from the editors of Farm Equipment and analysts of Cleveland Research Co. The complete report is available to subscribers of Ag Equipment Intelligence. This summary is excerpted with permission.