The business climate within the German automotive industry appeared to cool in March. The indicator measured by the Munich-based Ifo Institute dropped to -18.7 points, representing a deterioration from the -15.7 points recorded the previous month. According to Ifo industry expert Anita Wölfl, while companies assessed their current business situation significantly worse than in the preceding month, their expectations for the future, however, did increase.
In areas like order intake, companies rated their order backlog better, though this figure remains in negative territory. This specific index showed a continuous improvement since September 2025, reaching -13.5 points in March. Similarly, outlooks for exports improved for the fourth month in a row, reaching 30.7 points during the month.
Additionally, signs point to a potential slowdown in job losses over the coming months. Employment expectations rose notably to -19.8 points, coming up from -44.0 points in February. This trend is reinforced by preliminary official data: in the first quarter of 2026, the Federal Employment Agency reported an uptick in new jobs for professions crucial to the auto industry. Wölfl stated that this suggests the persistent decline in new positions, which has been observed since 2022, now appears to have halted.
