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German Auto Climate Worsens in March With Brighter Hiring Signals

Stronger forward-looking readings suggest a sector that may be stabilizing on jobs.

Overview

  • The Ifo Institute disclosed Tuesday the auto-industry climate index fell to -18.7 in March from -15.7 in February.
  • Firms rated their current situation much worse, even as their business expectations improved.
  • Forward-looking demand signals improved, with the order backlog at -13.5 after steady gains since September 2025 and export expectations up for a fourth month.
  • Employment expectations jumped from -44 to -19.8, and Ifo expert Anita Wölfl said job cuts could slow in the coming months.
  • Early labor-agency data show more new auto-related job postings in Q1 2026, hinting the drop since 2022 may be ending, though most gauges remain below zero.