According to the latest economic survey by the Ifo Institute, business in the German auto industry is deteriorating. But companies are hoping for an improvement in the situation over the next six months.
Ifo economic survey: December 2020
Ifo Institut
In the Ifo Institute's December survey, automakers and suppliers rated their current situation at minus 5.4 points. In November 2020, the figure had still been plus 5.0 points. At the same time, they expect an improvement in the next six months, with the value for expectations rising to plus 10.1 points after minus 1.6 points in November. "The carmakers and their suppliers are feeling the renewed lockdown, but they are counting on catch-up effects," said Klaus Wohlrabe, head of Ifo surveys.
In December 2020, companies' production expectations plunged from minus 0.7 to minus 20.6 points. The demand indicator also fell, albeit slightly, to 8.8 points. According to the survey, the number of jobs will also fall, with the indicator dropping slightly to minus 35.2 points. In contrast, export expectations recovered from minus 4.0 points in November to minus 2.5. Compared with the previous month, the order backlog rose marginally to 7.1 points.