MUNICH (dpa-AFX) - Improved export prospects are lifting the mood in the German automotive industry. The Ifo Institute's corresponding indicator rose in March to its highest level since last May, as the Munich-based economic researchers announced on Wednesday. At minus 5.8 points, it was 4.1 points higher than in February.

"The German automotive industry now seems to have finally emerged from the economic low of the second half of 2023 and is looking to the future with more confidence," said Ifo expert Anita Wolfl. The decisive driver for the positive development was the outlook for the future, which improved from minus 29.5 to minus 18.7 and is no longer quite as negative as it was last year. In contrast, the assessment of the current situation deteriorated slightly from 11.9 to 8.1 points.

Export prospects were particularly positive, according to the Ifo Institute. They improved by 23.7 points to plus 13.8 points. This was the best value since April 2023. One reason for this is likely to be the positive development in the USA and China, the two most important sales markets for the German automotive industry, according to Ifo.

Another ray of hope is that there are only a few problems in the supply chains. "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 Wolfl.

Last year, the mood 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./ruc/DP/men