Compared to other US industries the rate of insolvencies is low in the machinery sector, and it is expected that business failures will level off or even decrease slightly (by about 1%) in H2 of 2015.
The outlook for the machinery industry is promising, as the Italian economy is expected to grow 0.6% in 2015 and 0.9% in 2016 after two years of contraction.
The machinery sector should benefit from the economic rebound in France, with GDP forecast to grow 1.1% in 2015 (after 0.2% in 2014) and stronger growth in industrial production and exports.
China’s machinery sector has seen high overcapacity: profits of machinery businesses will be squeezed further by fierce competition, as companies have to offer lower prices to keep market shares.