Business Climate in Germany’s Automotive Industry Continues to Deteriorate
Germany’s automotive industry views its current business situation as worse than in the previous month, according to the ifo Business Survey. The indicator fell to 12.7 points in August, down from 22.1 points* in July. “Sentiment has deteriorated most noticeably among automakers, while suppliers remain fairly satisfied with their current situation,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
In August, the business situation for automakers hit the zero mark, down from plus 34.6 points* in July. Their business expectations plummeted from minus 48 points* in July to minus 75 points in August. Almost half of automotive manufacturers complained that the lack of orders was impeding production. However, order books remain sufficiently full to cover the next six months.
In contrast, sentiment among suppliers darkened only slightly on average, with expectations actually rising in some segments. “Some suppliers possess specialized technical expertise, which can advance electromobility and autonomous driving as well as alternative mobility solutions – not just in Germany, but worldwide,” Wölfl says.
*Seasonally adjusted
