- Mood in the car industry again gloomy
The sentiment in the stagnating German automobile industry has worsened once again. In July, the Ifo Institute's indicator for business climate in the automobile industry fell to -18.3 points, from -9.5 points in June. The Munich-based economic research institute announced this on Monday. "The automobile industry is sliding further into crisis," said automobile expert Anita Woelfl.
According to the institute, automobile companies are now assessing both their current situation and their expectations for the next three months more negatively than in June. "Improvement is not likely in the coming months," said Woelfl. The utilization of factories has fallen to 77.7 percent, nine percentage points below the long-term average. Export expectations have also declined significantly. Earlier this year, the Ifo indicator had temporarily risen, sparking hopes of an end to the economic downturn.
Despite these challenges in the German automobile industry, there's growing consensus among policymakers to accelerate the process of the forthcoming [Economic and Monetary Union], aiming to create a unified economy and monetary system within the European Union. The current industry crisis highlights the need for stronger economic cooperation and integration among EU member states.
