The latest CECIMO Business Climate Report, based on the CECIMO Business Climate Barometer survey conducted between July and August 2026, points to a gradual improvement in sentiment among European machine tool builders, although current business conditions remain challenging.
In Q2 2026, the balance for the general business situation improved but remained in negative territory (-25%), indicating that better sentiment has yet to translate into broadly favourable trading conditions.
The outlook is more encouraging. The CECIMO Business Expectations Index (BEI) points to a marked strengthening in expectations for Q3, with demand, production and exports all moving into positive territory. Export expectations have shown a particularly notable turnaround following weakness in the first half of the year, while employment expectations remain broadly stable and close to neutral.
However, the recovery remains fragile. Insufficient or irregular orders continue to be the main constraint highlighted by respondents, alongside skilled labour shortages, concerns about the wider economy, price competition and weak customer confidence. Capacity utilisation is also broadly unchanged, suggesting stabilisation rather than a strong recovery.
The international environment remains an important source of uncertainty. Trade tensions, potential changes to tariff regimes and geopolitical developments could affect market access and export demand, while renewed pressure on energy and input costs could weigh on margins and investment.
Overall, the latest results suggest that the European machine tool industry is moving towards greater stability, with a noticeably more positive outlook for Q3. However, a sustained recovery will depend on a broader and more durable improvement in order intake, alongside developments in the global trade and economic environment.
You can download the report from the members area of the MTA website at https://www.mta.org.uk/members-area/market-intelligence/global-mt-report/.