Business situation in German car industry worsens

The situation in Germany's car industry has worsened for the fifth month in a row as the industry indicator fell from plus 7.9 points in November to minus 1 point in December 2021, the ifo Institute said on Wednesday, reported Xinhua.

"This further worsening is driven by manufacturers, not suppliers," said Oliver Falck, director of the ifo Center for Industrial Organization and New Technologies.

The situation indicator for manufacturers in Germany plummeted significantly from 36.5 points to 15.6 points in December, according to the institute.

"All manufacturers continue to be affected by supply bottlenecks for intermediate products," it noted. With both the export expectations index and the business expectations index dropping in December, international business seems to continue to stall.

The manufacturers' situation has a "direct impact on suppliers, for whom current business remains poor," the institute said. Although their situation indicator has risen to minus 13.6 points, it "remains deep in negative territory."

Suppliers' business expectations in Germany are also "more pessimistic than they have been for almost two years," the institute noted. The corresponding index fell slightly to minus 28.6 points.