October 7, 2023
Business Climate in the German Automotive Industry Brightens
The business climate in Germany’s automotive industry has improved slightly. In September, the indicator rose to -14.7 points, up from -18.1 points* in August. “German automakers and their suppliers are satisfied with their current situation, but their expectations are still at rock bottom,” says Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies
In the automotive industry, companies assessed their current business situation in September at 20.9 points, compared with 13.2 points* in August. Their expectations rose only marginally, from -44.8 points* to -44.6 points. The supply of important intermediate products remains tight, according to 53% of the companies surveyed. Nevertheless, they plan to increase their production in the coming months and want to pass on increased manufacturing costs. To this end, the automotive industry is preparing to make do with fewer employees. “On the one hand, the structural shift to electromobility means fewer workers will be needed, while on the other, the shortage of skilled workers will make it increasingly difficult to recruit personnel,” Falck says.
*Seasonally adjusted
Source: ifo Institute
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