Situation in the German Automotive Industry Slightly Improved
German carmakers and their suppliers assessed their current business situation as slightly better than in the previous month. The indicator rose from minus 7.7 points in January to minus 2.3 points in February, meaning that positive and negative assessments are more or less balanced. This is a finding from the ifo Institute’s latest Business Survey. At the same time, managers are noticeably more optimistic about the coming months. “Right now, automakers are still stuck in midwinter – but they’re looking forward to spring,” says Klaus Wohlrabe, Head of Surveys at ifo.
Demand was rather sluggish in February; the corresponding indicator dropped to minus 3.6 points from plus 10.6 in January. Accordingly, order books grew only slightly. The survey score was 8.6 points. The stock of finished goods is higher than usual. This indicator dropped to minus 9.1 points from plus 5.1 in January.
But expectations for the coming months rose from plus 15.1 to plus 37 points. Production is set to ramp up again significantly. The indicator rose from minus 0.5 points in January to plus 35.3 points. “A look to international markets is cheering the industry up right now,” Wohlrabe adds. Carmakers are expecting their export business to grow; the indicator reached plus 10.7 points in February. However, companies will need fewer employees to conduct their business; employment plans continue to provide for job losses.
