BERLIN (Reuters) - The business situation for German car manufacturers and their suppliers hits a three-year high in May, but managers are pessimistic about the future, a survey by the Ifo economic institute showed on Wednesday.
Ifo said the car industry business situation indicator rose to 36.6 points, the highest level since September 2018 and up from 23.2 points in April.
"Business is still very good at the moment," said Klaus Wohlrabe, head of Ifo surveys. "But the first dark clouds are gathering again, probably because of the chip shortage."
The indicators for optimism, order backlog, production and export expectations all fell in May, Ifo said, suggesting managers expect demand and output to grow more slowly.