Sentiment in the German Automotive Industry Remains Subdued
The ifo Business Climate Index for the German automotive industry remained virtually unchanged at a low level in December 2023. “However, companies in the industry were generally slightly more optimistic about 2024 than they were in November,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.
The German automotive industry assessed its business situation as slightly worse in December 2023. The indicator fell to 9.5 points, down from 15.4 points* in November. Nevertheless: “German automotive companies closed 2023 with what they consider to be a satisfactory level of production. This is also confirmed by the official figures for the year,” Wölfl says. According to Germany’s Federal Motor Transport Authority, more than 2.8 million new vehicles were registered in Germany in 2023, or 7% more than in 2022.
Expectations for the coming six months were somewhat more positive than in the previous month; the indicator rose from -44.3 points* in November to -39.6 points in December. In contrast, the indicator for export expectations fell to -10.0 points, down from -1.3 points* in November. “But we shouldn’t read too much into the figure for December. Throughout 2023, the German automotive industry recorded significant growth in exports, especially to the euro area,” Wölfl says.
*Seasonally adjusted
