Published by Global Banking & Finance Review®
Posted on December 3, 2025
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleThe Ifo survey reveals a decline in sentiment within Germany's auto sector in November, driven by pessimistic business expectations amid economic uncertainty.
BERLIN, Dec 3 (Reuters) - Sentiment in Germany's automotive sector deteriorated once again in November as companies became more pessimistic in their business expectations, a survey showed on Wednesday.
The Ifo economic institute's business climate index for the sector dropped to -20.0 points in November from -13.4 points the month before, reversing a sharp rise reported in October.
"These ups and downs in the business climate reflect the very high and rising level of economic policy uncertainty in Germany and worldwide," said Ifo industry analyst Anita Woelfl.
Companies' more pessimistic business expectations were the main driver behind the fall, with that index decreasing to -23.0 points from -4.6 points in October.
While incoming orders stabilised by September, and orders from the euro zone even rose sharply in the January-September period, companies do not expect any fresh impetus from international business in the coming months, the survey said.
Germany's automotive sector has struggled under competition from Chinese producers and high U.S. tariffs, in addition to recent chip supply issues due to a dispute over Nexperia.
(Reporting by Miranda MurrayEditing by Tomasz Janowski)
The business climate index is a statistical measure that reflects the overall economic sentiment and expectations of businesses within a specific sector, indicating their outlook on future business conditions.
Incoming orders refer to the requests received by a company for products or services, which indicate demand and can influence production and inventory decisions.
The automotive sector encompasses all businesses involved in the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.
Chip supply issues refer to shortages or delays in the availability of semiconductor chips, which are essential components in modern vehicles and electronics, affecting production and sales.
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