ifo: Business Expectations in German Automotive Industry Improve Considerably

The Business Climate Index in the German automotive industry has risen significantly. The figure stood in July at -15.6 points, down from -21.6* points in June. Although companies continued to assess their business situation as just as poor as in the previous month and plan to cut more jobs, their business expectations, on the other hand, continued to rise sharply. After hitting a low of -30.7* points in April, they rose to -0.1 points in July. “The order books are filling up again somewhat, and export expectations have risen,” says ifo expert Anita Wölfl.

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The official data on incoming orders in the automotive industry, available through May 2026, also indicates a significant improvement, showing a positive trend for orders from Germany and, above all, from the eurozone. Manufacturers of vehicle bodies and superstructures, on the one hand, and manufacturers of electronic equipment, on the other, play an important role in that. They manufacture devices and components that can also be used outside the automotive industry, for example, in the defense sector. “The rise in investment in armaments across Europe could benefit parts of the automotive industry,” says Wölfl.

*Seasonally adjusted

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München