Situation in the German Automotive Industry Somewhat Improved
Sentiment among German automotive manufacturers and their suppliers improved somewhat in November, finds the latest ifo Institute survey. The indicator rose to minus 2.2 points, up from minus 4.3 points in October. The indicator for business expectations surged to minus 13.3 points, following minus 35.3 in October. “The risk of a gas shortage this winter has decreased, and with it, the risk of a deep recession,” says Prof. Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. As a result, the German automotive industry is more confident.
Sentiment improved among automakers in particular: their expectations vaulted to minus 2.8 points, up from minus 30.6 points the previous month. The indicator for the current business situation also rose, from plus 2.6 points in October to plus 8.2 points in November. “Automakers are already planning production increases,” Falck says. The indicator for the next three months climbed to plus 76.4 points. However, in November manufacturers reduced production (minus 36.6) in response to the fall in demand (minus 34.1).
Sentiment improved among suppliers as well, rising to minus 6.7 points, following minus 16.2 points in October. Expectations increased only slightly and remained way down at minus 26.6 points.
