According to the Ifo Institute, sentiment in the German automotive industry improved slightly in September.

The business climate index for the sector rose by 1.3 points, but at minus 23.0 points remains at a very low level in a long-term comparison, the Munich-based research institute announced on Wednesday. "The automotive industry was thus able to halt the nosedive of the previous month. However, it would be too early to give the all-clear," said Ifo industry expert Anita Wölfl.

Companies are less pessimistic about the coming months than in the previous month. The indicator for business expectations climbed to minus 32.4 points in September, from minus 39.6 points in August. However, companies assessed their current situation as noticeably worse, as the Ifo explained. The barometer for the business situation fell to minus 13.0 points, after minus 7.5 points in August.

Volkswagen's recent announcement of cost-cutting measures has highlighted the problems facing car manufacturers. But it was not only the Wolfsburg-based company that recently lowered its forecast. Premium manufacturers Mercedes-Benz and BMW also lowered their targets, partly due to the weakness in the important sales market of China.

(Report by Klaus Lauer, edited by Myria Mildenberger; - If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets)).