German auto industry sentiment improved markedly in October, despite the negative news the sector has faced recently.
A survey by the Ifo Institute for Economic Research in Munich showed that its business climate index rose by about 30 points, from -33.2 to -4.1, its best level since mid-2024.
Carmakers improve their assessment of their situation
The improvement was more pronounced in companies’ assessment of their current situation.
The sub-index that measures this assessment recorded a positive reading for the first time since mid-2024.
Companies’ expectations for the coming months also improved, though at a slower pace. Although pessimists still outnumber optimists, the gap between them has narrowed noticeably.
Anita Wölfel, automotive expert at the Ifo Institute, said the sharp monthly swings in the index reflect continued uncertainty.
She noted that the agreement between France and Germany on a joint automotive strategy may have contributed to the improved sentiment.
According to Wölfel, the agreement gives carmakers some breathing room to deal with current pressures.
However, regaining a leading position in the technological race remains the sector’s main challenge.
The figures reflect companies’ views during October. The institute conducted its survey before the results of the US midterm elections were known, so reactions to those results are not reflected in the index.
