Germany’s auto sector confidence dips on tariff concerns

Germany’s automotive industry saw further business sentiment decline in May, with the ifo Business Climate Index falling to -31.8 points from -30.7 in April, as uncertainty over US tariff policy continued to weigh on the sector.

“The confusion surrounding the US tariffs is causing problems for the automotive industry in Germany,” said ifo industry expert Anita Wölfl.

While assessments of the current business situation edged up slightly to -35.3 points from -36.1, they remain deeply negative. Business expectations deteriorated further, dropping to -28.3 points from -25.2 in April.

Export expectations recovered to -0.8 points in May after plunging to -11.6 in April, but continued volatility in US trade policy has left sentiment fragile.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama