Situation in the Automotive Industry Worse
Business has deteriorated for German automakers and their suppliers. In December, their assessment of their current situation fell to minus 5.4 points; it had stood at plus 5.0 points in November. This is a finding from the ifo Institute’s latest Business Survey. At the same time, however, companies expect the situation to improve over the next six months. The expectations indicator rose from minus 1.6 points in November to plus 10.1 points. “Automakers and their suppliers are feeling the effects of the renewed lockdown, but they are counting on catch-up effects,” says Klaus Wohlrabe, Head of Surveys at ifo.
Production expectations in the sector took a nosedive from minus 0.7 points to minus 20.6 points. Export expectations rose from minus 4.0 points in November to minus 2.5 points. Jobs will be lost; this indicator fell slightly to minus 35.2 points.
Meanwhile, the demand indicator fell narrowly to 8.8 points from 13.3 points in November. Order books grew marginally month over month from 5.9 points in November to 7.1 points. The stock of finished goods is lower than usual for the season; this indicator fell slightly to minus 5.7 points.
