Canada and the United States are enjoying an economic boom – Canada returned to pre-pandemic levels for the first time in June – and agriculture and construction equipment manufacturers are upbeat about the coming months. As a sign of economic health, farm machinery sales are strong and coupled with high commodity prices and healthy anticipated yields, the agricultural sector appears robust and unshakeable.
The Association of Equipment Manufacturers in the United States and Canada saw an 11 to 15% growth over the past year and expect a 6 to 10% growth in the year ahead, according to a member survey.
But not all is sunshine and lollipops.
There are four scenarios that the association sees that could affect the economic recovery going forward.
1. Inflation. If inflation persists, equities will fall, “resulting in a slowdown of global growth.”
2. COVID variants. If there are more lockdowns and COVID restrictions ahead, it would lead to global economic stagnation. Expect a rebound in 2023.
3. Consumer hesitancy. Many consumers could still be hesitant to embrace a return to normalcy. A solid recovery requires a full return of consumer confidence.
4. Consumer boom. However, if consumer confidence is restored more quickly, a spending boom will be on the near horizon.
