As anticipated, UK agricultural tractor registrations in October were again well below ( -23.4%) last year’s level.

Twelve months ago, registrations were inflated due to a number of end-of-series promotions, so this year’s figures follow a more normal seasonal pattern. Indeed, the figure of 846 for October 2017 remained above the corresponding month in 2015.

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                                                                                    Source: AEA Economics Department

Despite the slowdown relative to last year in the past three months, total registrations for the year to date remain 4.4% up (9,904 units) on the equivalent period in 2016 and are the highest at this point since 2014.

The end of the promotional period saw a drop off in registrations in November and December 2016, so we might expect to see a return to year-on-year growth in the coming months.

UK tractor registrations are taken as a broad indicator of the strength of the domestic market for agricultural equipment. Tractors must be licensed for use on public roads and as such are registered with the Department for Transport which allows an accurate count to be made. In value terms, sales of tractors, plus parts and accessories, account for almost one half of farmers’ total spend on equipment, which again makes this data series a prime indicator.