German auto industry sentiment worsens amid tariff uncertainty
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Business sentiment in Germany’s auto industry declined further in May 2025, with the ifo index dropping to -31.8 from -30.7 in April. According to ifo expert Anita Wölfl, confusion over U.S. tariffs is weighing heavily on the sector.
While companies reported a slight improvement in current conditions (rising to -35.3 from -36.1), business expectations fell to -28.3 from -25.2. Export outlooks improved to -0.8, recovering from -11.6 in April, but uncertainty remains high due to volatile U.S. trade policy.
While companies reported a slight improvement in current conditions (rising to -35.3 from -36.1), business expectations fell to -28.3 from -25.2. Export outlooks improved to -0.8, recovering from -11.6 in April, but uncertainty remains high due to volatile U.S. trade policy.