Farm machinery sales suffered another steep decline in August, plummeting across mainland states.
Tractor and Machinery Association executive director Gary Northover said tractor sales were down 19 per cent in August, ending 12pc behind last year.
"Falls were felt in all size categories in all states including the very buoyant Western Australian market which was down 27pc on the same month last year now sitting 6pc behind last year," he said.
"Across the nation, it continues to be NSW suffering the greatest declines with a further 27pc drop in August , now 22pc behind last year.
"Queensland, which had been showing signs of recovery, slipped 14pc in the month and is now 7pc behind for the year."
Mr Northover said while Victoria had a solid month, it remained 8pc behind for the full year.
"South Australian sales have gone from bad to worse with a massive 48pc drop in August , now a full 25pc behind last year," he said.
"Sales in the NT dropped for the month now 5pc behind last year."
Mr Northover said Tasmania was the sole state still performing, currently 7pc ahead on year to date sales.
"The market across Australia is being hampered by a distinct lack of confidence arising out of the drought being experienced in the eastern states combined with a somewhat circumspect attitude being felt in the leisure sector which continues to contain low horsepower tractor sales," he said,
"The growth of this lower end of the market has been a standout for the industry over the past decade but it is showing signs similar to those in the wider economy, much of which has been written elsewhere."
Mr Northover said depressed sales were being experienced across all market segments, with the large broadacre tractor segment of above 150 kilowatt (200 horsepower) particularly hard hit, back 36pc for the month.
"Combine harvester sales are tracking sideways with levels at around half of last year's sales and this trend is expected to continue through harvest season," he said.
"Baler sales continue to be the one high point in the market as the demand for hay is still strong.
"August sales were up 46pc on last year and are now 22pc ahead on a year to date basis."
Mr Northover said quarterly business surveys conducted by the TMA highlighted dealer's pessimistic outlook.
"Dealers are generally reporting low levels of confidence in the outlook along with a generally poor order bank, all of which will be driven by the rainfall outlook," he said.
