The results of a study published by the Ifo economic Institute showed that business sentiment in the automotive industry improved markedly in March - the corresponding index increased by 4.1 points compared to February, reaching -5.8 points (the highest value since May 2023).
“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,” the Ifo economic institute said.
The data also showed that business expectations for the next six months were significantly less pessimistic - the sub-index rose to -18.7 points from -29.5 points in February. Meanwhile, export prospects were particularly rosy - the corresponding indicator is showing a positive double-digit balance for the first time in almost a year, helped by improvements in the United States and China, two of the most important markets for the German automotive industry. The Ifo economic institute also said that in March, only a few companies reported problems in their supply chains, despite serious disruptions caused by attacks on ships in the Red Sea.