On Wednesday, the German ifo institute reported a significant improvement in the business climate of Germany’s automotive industry for March, with the corresponding indicator surging by 4.1 points to reach minus 5.8 points.
Anita Woelfl, an expert at ifo, remarked, “The German automotive industry seems to have finally emerged from its economic low in the second half of 2023 and is looking to the future with more confidence.”
While business expectations for the next six months showed considerable improvement, they remained in negative territory. Last month, the indicator rose from February’s minus 29.5 points to minus 18.7 points.
The export outlook is particularly promising, with the indicator displaying a positive double-digit balance for the first time in almost a year, according to the ifo.
This optimism can be attributed, in part, to positive developments in China and the United States, which are identified as “the two most critical sales markets for the German automotive industry.”
Woelfl noted that recent months have seen fewer challenges in the supply of key intermediate products, indicating that the efforts made by Germany’s car industry to bolster supply chains since the onset of the pandemic are starting to pay off.
