German Automotive Industry Can Breathe Again
The business climate in the German automotive industry eased substantially in January, with the indicator rising to -6.3 points, up from -15.8 points* in December. “Companies in the German automotive industry are more positive about their current business situation and are much more optimistic about the coming months than they were at the end of 2023,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
The indicator for assessments of the current business situation rose to 12.5 points in January, up from 9.7 points* in December 2023, while business expectations for the coming six months climbed to -23.4 points, up from -38.3 points* in December. “There are several positive developments at play here,” Wölfl says. According to data from the German Federal Statistical Office, the industry’s sales on the international automotive markets within and outside the EU rose sharply throughout last year. Economic experts worldwide surveyed by ifo also expect the German automotive industry to achieve robust growth in key sales markets in 2024.
“However, despite this positive development and rosy outlook, the signs aren’t yet pointing to all clear,” Wölfl says. Several companies continue to rate the order situation as unsatisfactory, capacity utilization has declined, and there is a growing shortage of skilled workers.
*Seasonally adjusted
