Business Climate in Germany’s Automotive Industry a Little Cooler
Sentiment in the German automotive industry has deteriorated marginally. In November, the Business Climate Index for the industry slipped to -16.8 points, down from -16.3 points* in October. “Companies in the automotive industry rate their current business situation as better than in the previous month, but are more pessimistic about the months ahead,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
The indicator for the current situation in the German automotive industry rose to 15.2 points in November, up from 9.8 points* in October. In contrast, the indicator for business expectations fell to -44.0 points, down from -39.2 points*. “The German automotive industry isn’t emerging from its economic downturn,” Wölfl says. This is the impression gained by looking at assessments of business development, starting with those in June 2023: sentiment in the industry slumped significantly at the time and hasn’t moved much from that level since.
*Seasonally adjusted
