- The automotive sector's atmosphere is experiencing a noticeable descent.
The future of the German automotive sector, as per the Ifo Institute, is causing quite a stir. The Ifo Institute, based in Munich, reported a significant drop in the business climate in the sector, dropping by 6.2 points to -24.7 points in August. This marks the fourth consecutive downturn, following a brief upturn. Ifo expert Anita Woelfl stated, "The automotive industry is in a downward spiral."
The outlook for the next six months is particularly dismal, with the indicator now standing at -40.5 points. The current business situation, while described as slightly less unfavorable than last month, still sits at -7.2 points.
According to Woelfl, "German automotive companies are grappling with a decrease in new orders, particularly from overseas." This problem has also begun to impact their staffing plans.
The European Union might be concerned about the ongoing challenges in the German automotive sector, given its significant impact on the European economy. The German automotive industry, struggling with decreased new orders, particularly from overseas, might face challenges in meeting the EU's production targets.
