Sentiment in German auto industry falls despite signs of improvement

Sentiment in Germany's automotive industry has worsened recently but there are signs of improvement, the Munich-based ifo Institute said.

The Ifo business climate index for the sector fell by three points to -18.7 points in March.

"Companies assessed their current business situation as considerably worse than in the previous month, but raised their business expectations," industry expert Anita Wölfl said.

Order backlogs and export expectations improved.

Job cuts could also slow, with employment expectations improving by more than 24 points to -19.8.

Labour market statistics also point in this direction: in the first quarter, more vacancies for occupations relevant to the automotive industry were again reported to the Federal Employment Agency.

"The decline in new jobs, which could be observed since 2022, seems to have come to a halt," Wölfl said.