The Ifo business climate index for the automotive industry has shown a sharp deterioration. The industry indicator stood at -35.0 points in September, a significant drop from -22.0 points recorded in August, the Ifo Institute announced on Monday.
Companies assessed their current business situation much worse than in August, and even worse than in June or July, marking a new low for the year 2026. Business expectations, which had already fallen sharply in August, remained sluggish in September. “The automotive industry is still stuck in crisis,” stated Anita Wölfl, an Ifo industry expert.
This sense of crisis is reflected across numerous related indicators. While export and employment expectations had risen between July and August, both metrics fell again in September. Furthermore, companies rated their order backlog in September as worse than it had been in the previous month.
The earnings outlook, which is assessed quarterly, also shows a marked decline. According to company reports, the earnings situation dropped significantly in the third quarter compared to the preceding quarter.
