Business Climate in German Automotive Industry Deteriorates

The business climate in the German automotive industry deteriorated somewhat in March. The indicator fell to minus 18.7 points, down from minus 15.7* points in February. “Companies assessed their current business situation as considerably worse than in the previous month, but raised their business expectations,” says industry expert Anita Wölfl. 

Companies once again assessed their order backlog as better, although it was still in negative territory: The indicator had risen continuously since September 2025 and reached minus 13.5 points in March. It’s a similar story for export expectations: They improved for the fourth time in a row compared to the respective previous month and reached 30.7 points in March.  

Job cuts could also slow down in the coming months: Employment expectations rose to minus 19.8 points, up from minus 44.0* points in February. That’s also indicated by initial signs in the official statistics: In the first quarter of 2026, more new jobs for professions that are relevant for the automotive industry were reported again at Germany’s Federal Employment Agency. “The decline in new jobs, which could be observed since 2022, seems to have come to a halt,” says Wölfl.  

*Seasonally adjusted