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2026-06-05, 06:00

ifo: Sentiment in the German Automotive Industry Brightens Slightly

The business climate in the German automotive industry improved somewhat in May, with the indicator rising to minus 20.8 points, up from minus 23.5 points (seasonally adjusted) in April. Companies assessed their current business situation as somewhat better than in the previous month and are also less pessimistic about the coming months. “In view of the continuing high level of uncertainty, sentiment in the automotive industry nevertheless remains very subdued,” says ifo industry expert Anita Wölfl.

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Export expectations fell considerably from 11.7 points (seasonally adjusted) in April to minus 16.4 points in May. The renewed tariff threats from the United States at the start of May likely played an important role in that. However, on May 20, 2026, the EU Commission and Parliament, and the Council of the EU Member States agreed to implement the trade agreement with the United States. That ought to have come as some relief to the automotive industry. “However, the US tariffs of 15% on cars and their parts that continue to apply still pose a significant challenge for the German automotive industry,” says Wölfl.

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München

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