BERLIN, March 3 (Reuters) - Sentiment in Germany's
automotive industry took a tumble in February as concerns grew
over falling demand, according to a survey released on Friday.
The Ifo economic institute said its business situation index
for the sector fell to 6.0 from 12.5 in January.
"Manufacturers in particular assess their current situation
as drastically worse than in the previous month. This presumably
has to do with the fact that buyers are being very cautious at
the moment," said Oliver Falck, director of the ifo Center for
Industrial Organization and New Technologies.
Suppliers, on the other hand, rated their current situation
as better than in the previous month, Ifo said.
Manufacturers' outlook clouded over, falling from 21.4
points in January to 2.8 points in February, according to the
survey.
"While manufacturers are still currently working through
existing orders, demand from potential buyers is faltering. One
reason could be the uncertain development of electricity prices.
In addition, there is talk of rationing power for recharging car
batteries," Falck said.
At the same time, the institute said automakers expected
exports to grow. "The bottom line is that fewer automakers plan
to expand production in the coming months," it said in a
statement.
(Reporting by Rachel More
Editing by Paul Carrel)
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