ifo Institute: Very Slow Recovery in the Automotive Industry
German carmakers and their suppliers assessed their current business situation better than in August, but the overall situation is still bleak. This is a finding from the ifo Institute’s latest Business Survey. In September, the indicator rose to minus 19.0 points, up from minus 35.9 points in August. It had bottomed out in April at minus 87.0 points. “The situation was catastrophic, then became abysmal. Now it is simply bad. This is the extent of the improvement,” says ifo expert Stefan Sauer.
Business expectations for the coming months fell to 28.8 points, down from 36.1 points in August and from a high of 41.6 points in July. In addition, companies still expect to reduce headcount, with the corresponding indicator at minus 38.6 points, after minus 46.1 points in August.
One glimmer of hope is to be found in the export expectations, which brightened somewhat as the indicator rose slightly to 32.2 points from 31.1 points in August. Production plans continue on their expansionary course: the corresponding indicator reached a healthy 53.1 points, up from 48.2 points in August. Order books improved further compared to the previous month, with the indicator rising to 53.7 points from 39.1 points in August.
However, demand took a considerable slide compared to the previous month, falling to 36.8 points from 61.9 points in August. The stock of finished goods remained at a low level.
