Sentiment in the German Automotive Industry Improves
The business climate in Germany’s automotive industry brightened again in April. The index rose to -1.5 points, up from -5.3 points* in March. “Companies in Germany’s automotive industry rate their current business situation as slightly better, but more importantly, their outlook once again turned much less pessimistic than in March,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
“However, the order situation is putting a damper on the business climate,” Wölfl says. At present, companies still consider their order backlog to be relatively small. In addition, more companies than in March are complaining about a lack of orders as an obstacle to production. At the same time, however, the decline in orders in April was significantly lower than in the previous month and the order backlog is also sufficient for a longer period of time. “Both can be seen as positive signs,” Wölfl says.
*Seasonally adjusted
