ifo Institute: Interim High in the Automotive Industry Over
The expectations of German automakers and their suppliers for the coming months have clouded over. In November, they declined for the fourth month in a row, falling from plus 16.3 points in October to minus 4.0 points. This is the finding of the ifo Institute’s latest Business Survey. However, the companies assessed their current business situation as better. This indicator rose from minus 2.0 points in October to plus 7.2 points. “Business is satisfactory for now, but what companies see in their future isn’t cheering them up at the moment,” says Klaus Wohlrabe, Head of Surveys at ifo.
“In October, we saw a slump in new commercial registrations. Given the high levels of uncertainty among companies, that is likely to continue,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies.
With companies reporting that they intend to slash production, the indicator fell from plus 38.6 points to minus 0.5 points. Export expectations tumbled from plus 19.0 points in October to minus 5.0 points. Moreover, a majority of companies still stated that they were reducing headcount; the indicator rose only slightly to minus 34.6 points.
Growth in order books faltered recently, with the relevant indicator falling markedly to 6.2 points from 29.3 points in October. However, the stock of finished goods is still lower than usual for the season; the indicator rose only slightly to minus 4.9 points.
