The decline in sentiment among German car manufacturers has at least stopped; in September there was a slight upward trend. However, the Ifo does not see any reason for the all-clear.
The mood in the German auto industry is stabilizing. After a sharp fall in the summer, it improved by 1.3 points in September, as the Ifo Institute announced. However, the current level of the indicator is still very bad at minus 23. “The auto industry was able to stop the nosedive of the previous month. However, it would be too early to give the all-clear,” says Ifo expert Anita Wölfl.
The current improvement is due to companies’ expectations for the coming months. Apparently fewer companies expect their situation to deteriorate further. The associated sub-indicator improved from a very low level from minus 39.6 to minus 32.4 points. However, the current situation is again described in a more negative way. This sub-indicator fell by 7.5 points to minus 13 points.
Source: Stern
