The German Ifo Institute for Economic Research said that the German automotive industry faces an uncertain future, amid growing economic concerns.
The institute indicated that the business climate index for the sector fell by 6.2 points to reach minus 24.7 points last August, which is the fourth consecutive decline after a temporary slight recovery.
“The mood in the automotive industry is deteriorating significantly,” said Anita Wölfel, an expert at the institute, adding that the outlook for the next six months is particularly negative, with the index at a very low level of minus 40.5 points. In contrast, the current business situation is described as less bad than last month, with the index at minus 7.2 points.
“German carmakers are suffering from a lack of new orders, especially from abroad, which will have an impact on employment plans in the future,” said Volfel.