Improved export prospects are lifting the mood in the German automotive industry, according to a monthly survey of industry executives by the ifo Institute for economic research.
Ifo's monthly indicator, based on survey responses, rose in March to its highest level since last May, the institute reported on Wednesday.
"The German automotive industry now seems to have finally emerged from the economic slump of the second half of 2023 and is looking to the future with more confidence," said ifo researcher Anita Wölfl.
Automotive industry executives in particular reported an improved outlook for the future, even as their view of the current situation today declined slightly.
Their assessment of future export prospects were particularly positive, according to the ifo Institute, rising to the highest levels since April 2023.
The improved outlook is likely due to positive economic developments in the United States and China, according to ifo. Those countries are the most important overseas markets for German carmakers.
German carmakers are also reporting fewer issues in their supply chains, another boost for the industry.
"The efforts that the German automotive industry has made since the pandemic to make supply chains more resilient seem to be paying off here," said Wölfl.
Last year, sentiment in the German automotive industry plummeted. Business expectations in particular had deteriorated significantly and were at times more negative than at the height of the coronavirus pandemic.
Since the end of 2023, however, the trend has been pointing upwards again, according to the ifo Institute's surveys.