The CECIMO Business Climate Barometer report for Q2 2026 continues to point to a difficult operating environment for European machine tool builders, with business conditions remaining weak and firmly in negative territory.
Expectations for Q2 2026 suggest a modest improvement in sentiment compared with the lows seen in 2023 – 2024. However, the recovery remains fragile and uneven, with no clear evidence yet of a broad-based upturn across the sector.
The CECIMO Business Expectations Index reinforces this picture of gradual but uncertain improvement. Although confidence strengthened during late 2025, the latest survey results indicate that momentum remains limited. Respondents continue to report challenges including weak and irregular order intake, subdued customer confidence, intensifying price competition, tighter financing conditions and ongoing shortages of skilled labour.
The outlook is further clouded by a rapidly evolving global environment. Trade tensions, the threat of new tariffs and wider geopolitical instability could weigh on export demand and investment decisions, while renewed pressures on energy markets and supply chains risk increasing costs and squeezing margins. Overall, the sector appears to be moving beyond the weakest phase of the recent downturn, but the recovery remains vulnerable to any deterioration in economic, trade or geopolitical conditions.
Note that the CECIMO Business Climate Barometer survey was conducted between April and May 2026. Consequently, all expectations and assessments reflect conditions during that period, and subsequent developments are not captured in these results.
You can download the Business Climate Barometer report from the members area of the MTA website at https://www.mta.org.uk/members-area/market-intelligence/global-mt-report/ – you will, of course, need your members login and password to access this.