Each month, the research institute surveys companies, gauging their current business situation and their outlook for the coming months. A negative index value reflects a prevailing pessimism among the surveyed businesses.
In December, carmakers'
expectations for the future darkened considerably, with the corresponding index
plunging from -30.9 points to -37.1 points. This deterioration, the institute
attributed to a dearth of orders and a dimming outlook for international
business. Conversely, companies assessed their present situation slightly less
negatively, with the index edging up from -33.8 points to -32.3 points.
The downward trend, according to IFO, extends to operational planning, as employment expectations declined from -33.9 points in November to -36.7 points in December. Anita Wollf, an automotive expert at the institute, remarked, "The number of companies contemplating job cuts has reached an unprecedented level."