German auto sector confidence plunges as business climate hits near-record lows
The Ifo Institute reports that Germany's automotive industry saw its business climate drop sharply in September, with export expectations turning negative.
According to the Ifo Institute, Germany's automotive industry entered September with a markedly lower business climate, dropping 13 points to a minus 35 reading, a level among the poorest in recent years. The assessment of ongoing business activity deteriorated further, with the corresponding index sliding from minus 6.1 to minus 31.3 points. Expectations for the coming months also weakened, as the forward-looking indicator fell to minus 38.6 points.
Export hopes, which had risen sharply in August, reversed direction and fell to minus 15.1 points in September. The institute also noted declines in employment expectations, profitability and order books, prompting Ifo sector expert Anita Wölfl to describe the industry as still being in crisis.
Why it matters
A sharp drop in confidence signals potential production cuts and job losses in Germany's key automotive sector.
In this story
