German Automotive Industry Back on Track
The business situation for German automotive manufacturers and their suppliers has improved significantly, finds the latest ifo Institute survey. In March, the indicator rose to plus 23.7 points, up from plus 7,6* points in February. “Both automakers and their suppliers assessed the current situation as better,” says Prof. Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies. “The suppliers’ business situation is actually better than the automakers’ – which has been rare in the last two years.”
Manufacturers’ assessment of their situation rose to plus 19.4 points, up from minus 19.1* points in February. Automakers were very satisfied with their current order backlog: the indicator remained high at 73.4 points. In view of subdued demand, manufacturers are not planning to ramp up production as heavily as they did in February. “Subsidy options expired at the end of last year, so pull-forward effects in car purchases may reduce demand,” Falck says. However, demand fell less in March than it did in February.
Suppliers’ assessment of their current situation jumped from 17.9* points in February to 34.7 points. Their order backlog grew for the first time in eleven months. Demand is also shaping up nicely – the indicator rose to 19.1 points, up from 4.8* points.
*Seasonally adjusted
