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Survey reveals slight improvement in mood of German Automotive industry

Edu Abade by Edu Abade
November 15, 2024
in Business
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The sentiment in Germany’s automotive industry is stabilizing, improving by 1.3 points in September following a sharp decline in the summer, according to the latest industry survey from the country’s ifo Institute released on Wednesday, October 2, 2024.

A report by the German News Service (delivered by dpa) indicated that at negative 23 points, however, the current level of the corresponding indicator is still very poor, the Munich-based economic research group found.

An ifo expert, Anita Wölfl, said: “The auto industry has been able to halt the free fall of the previous month. However, it would be too early to sound all-clear.”

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Read also: German government plans tighter rules for social welfare benefits

The improvement is due to companies’ more optimistic expectations for the coming months, with fewer firms believing their situation will deteriorate further.

The corresponding sub-indicator improved at a very low level from negative 39.6 to negative 32.4 points.

However, companies described their current situation more negatively again, with the corresponding sub-indicator falling by 7.5 to negative 13 points.

Germany’s ailing car industry, considered as one of the pillars of the country’s economy, has been struggling with low demand for electric vehicles as well as increasing competition from China.

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