Categories
Health

Ifo: Business in the auto industry is improving now | Free Press

The economic uncertainty of the Corona crisis has kept many people from buying a new car for months. Now there is a small turning point.

Munich (dpa) – The German automotive industry rates its business situation in October significantly better than in September, but is no longer so optimistic for the coming months.

That was the result of the current economic survey of the Ifo Institute. “The demand for cars has increased notably. That has considerably improved the mood among managers, “said Ifo polling chief Klaus Wohlrabe, in Munich.

The overall climate index for the automotive industry is even better today than it was a year ago at 8.5 points. In the corona pandemic, many people obviously felt safer in their own cars, and some of the money saved on vacations and events was spent on cars. State premiums for buying electric and hybrid cars boosted demand in Germany.

Capacity utilization in the auto industry increased significantly to 86 percent in October. The industry business situation index improved from minus 20.4 to minus 0.2 points. On the other hand, the high order book of September could not be maintained.

The expectations index fell for the fourth consecutive month, from 27.6 points in September to 17.7 points in October. Three-quarters of cars made in Germany are exported and demand in foreign markets is likely to be somewhat weaker in the coming months. Total German car exports in the first three quarters are 34 percent below the previous year. The companies were planning to cut staff, Wohlrabe said.