Friday 10 Jan
The German Institute for Economic Research (IFO) has reported a further decline in the business climate within Germany's automotive industry. The institute's index plummeted to -34.7 points in December 2024, a significant drop from -32.4 points in November. This worsening sentiment, according to IFO data, is accompanied by a growing number of companies considering workforce reductions, as reported by the German Press Agency (dpa).
Each month, the research institute surveys companies, gauging their current business situation and their outlook for the coming months. A negative index value reflects a prevailing pessimism among the surveyed businesses.
In December, carmakers'
expectations for the future darkened considerably, with the corresponding index
plunging from -30.9 points to -37.1 points. This deterioration, the institute
attributed to a dearth of orders and a dimming outlook for international
business. Conversely, companies assessed their present situation slightly less
negatively, with the index edging up from -33.8 points to -32.3 points.
The downward trend, according to IFO, extends to operational planning, as employment expectations declined from -33.9 points in November to -36.7 points in December. Anita Wollf, an automotive expert at the institute, remarked, "The number of companies contemplating job cuts has reached an unprecedented level."
