Situation for German Automakers Improves Slightly
Business was somewhat better in the German automotive industry in September. The indicator for the industry rose to minus 5.4 points, up from minus 9.8 points. This is a finding of surveys by the ifo Institute. However, expectations dropped to minus 4.0 points, down from minus 0.6 points. “The automotive industry’s manufacturers and suppliers have a different take on the future,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies.
Manufacturers are positive about business development in the next six months. The figure for their expectations rose to plus 16.0 points, up from plus 1.2 points in August. “This development is likely to be driven primarily by improved export expectations for the fourth quarter,” Falck suspects. The indicator climbed to 30.9 points, up from 26.1 points in August. “However, with the global economy slowing, it is questionable how long exports will continue to positively influence expectations.”
Suppliers’ outlook darkened. Their expectations dropped to minus 31.7 points, down from minus 20.1 points in August. The figure for the current situation also fell slightly to minus 15.5 points, down from minus 15.4 points in August.
