German Automaker Industry’s Business Climate Index Continues to Decline
The German automobile industry’s business climate index, as measured by the Munich-based Ifo Institute, has again fallen in May 2025, dropping to -31.8 points, following a decline of -30.7 points in April, according to the Institute’s statement on Tuesday. The industry is still struggling with the chaos surrounding US tariffs, said Anita Wölfl, Ifo’s sector expert.
While companies have slightly improved their assessment of the current business situation, it remains at a very low level, with the indicator rising to -35.3 points in May from -36.1 points in the previous month. In contrast, business expectations have decreased, dropping to -28.3 points in May from -25.2 points in April.
The volatile US tariff policy continues to have a significant impact on the industry’s export expectations, with the value improving in May to -0.8 points, but still recovering from a -11.6 point decline in April.