Financial News: German Auto Industry Confidence Weakens In February -

German Auto Industry Confidence Weakens In February - Ifo

03/03/2023 - 09:28:00 (RTTNews)

(RTTNews) - Optimism among Germany's automakers eased in February and they assessed the current economic situation as significantly worse as buyers were increasingly cautions amid fears of a recession, survey data from the ifo institute showed Friday.

The confidence indicator for the automobile manufacturing industry more than halved in February, to 6 points from 12.5 points in January. Business expectations among automakers also eroded in February and the corresponding indicator of the survey sunk to 2.8 points from 21.4 points. "While manufacturers are still currently working through existing orders, demand from potential buyers is faltering," Oliver Falck, director of the ifo Center for Industrial Organization and New Technologies, said.

The uncertain development of electricity prices as well as rumors of rationing power for recharging car batteries likely hurt buyer interest, Falck added.

German automakers expect exports to grow, though fewer automakers plan to expand production in the coming months.

That said, automakers do not expect any big impetus from international markets and their export expectations index dropped to minus 5.8 points in February.

Meanwhile, the auto industry suppliers assessed their current situation as better than in the previous month and they rated their order backlog as slightly better than in the previous month.

The number of vehicle companies reporting material shortages dropped to 55.1 percent from 53.0 percent. However, suppliers' were more pessimistic regarding the future and the expectations indicator of the ifo survey fell to minus 9.7 points from minus 3.9 points.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

China Industrial Profits Fall Sharply (01 hr(s), 39 min(s), 12 sec(s) ago)
(RTTNews) - The decline in China's industrial profits deepened in the first two months of 2023 ...Full Story»

Japan Leading Index Falls Less Than Estimated (01 hr(s), 47 min(s), 12 sec(s) ago)
(RTTNews) - Japan's leading index decreased slightly less than initially estimated in January, ...Full Story»

European Economic News Preview: Germany Ifo Business Confidence Data Due (02 hr(s), 22 min(s), 12 sec(s) ago)
(RTTNews) - Business confidence from Germany and monetary aggregates from the euro area are the to ...Full Story»

Japan Producer Prices Climb 1.8% On Year In February (59 min(s), 48 sec(s) ago)
(RTTNews) - Producer prices in Japan were up 1.8 percent on year in February, the Bank of Japan sa ...Full Story»

Japan Producer Price Data Due On Monday (42 min(s), 48 sec(s) ago)
(RTTNews) - Japan will on Monday release February figures for producer prices, highlighting a ligh ...Full Story»

Denmark Economic Sentiment Rises Further (27 min(s), 48 sec(s) ago)
(RTTNews) - Denmark's economic sentiment rose for a third month in a row in March, figures fro ...Full Story»

U.S. Durable Goods Orders Unexpectedly Slump As Aircraft Demand Extends Nosedive (59 min(s), 48 sec(s) ago)
(RTTNews) - Reflecting a continued slump in orders for transportation equipment, the Commerce Depa ...Full Story»

Spain Q4 GDP Growth Unrevised At 0.2% (54 min(s), 48 sec(s) ago)
(RTTNews) - Spain's economy expanded at a stable pace as initially estimated in the final quar ...Full Story»