The business climate within Germany’s automotive sector appeared somewhat dampened during March. According to the Munich-based Ifo Institute, the index measured a decline of -18.7 points, marking a worsening trend compared to the -15.7 points recorded in February. An expert from ifo noted that although companies assessed their current business situation significantly worse than the previous month, their overall expectations for the business were actually climbing.
Despite the overall negative sentiment, the evaluation of the order book improved again, though it remains in negative territory. This indicator has shown steady growth since September 2025, reaching -13.5 points in March. Furthermore, export outlooks improved for the fourth consecutive month, hitting a value of 30.7 points.
Signs also point to a potential slowdown in job reductions in the coming months. Expectations regarding employment rose to -19.8 points, significantly improving from -44.0 points in February. This trend is supported by preliminary official statistics: in the first quarter of 2026 alone, the Federal Employment Agency reported an increase in new positions for professions relevant to the auto industry. This suggests that the decline in new job postings, which has been observed since 2022, may have come to a halt.