Ifo Institute: Confidence in the German automotive industry remains pessimistic

Munich – The German automotive industry has yet to emerge from its long-lasting slump. The business climate index for the automotive sector fell slightly in June for the third consecutive time to -32.2 points, down from -31.7 points in May (seasonally adjusted data). “The uncertain situation in global trade is coming up against what are already tougher conditions on the global sales markets,” said Anita Wölfl, an industry expert at the German Ifo Institute, which conducted the survey. “The signals from abroad are still too unclear for optimism.”

Businesses assessed their economic situation in June as worse, with the indicator falling to -36.4 points, down from -35.1 points in May. Business expectations increased slightly from -28.3 points in May to -27.8 points in June.

In general, companies assessed their order backlog as significantly better than in the previous month, although still in negative territory. However, export expectations are continuing to experience the ups and downs of the past few months. The indicator fell to -13.7 points, down from -2.0 points in May.