BERLIN, Oct 2 Reuters The German automotive sector was able to recover somewhat in September from a dramatic tumble in sentiment the previous month but it remains deep in negative territory, according to an industry survey published on Wednesday.

The Ifo Institute39;s business climate index for the sector improved by 1.3 points in September to minus 23.0 points.

The car industry was thus able to halt the nosedive of the previous month. However, it would be too soon to give the allclear, Ifo39;s sector specialist Anita Woelfl said in a statement.

European carmakers are up against high energy and labour costs in their home markets as well as stiff competition from China.

The troubles have been illustrated most recently by a costcutting drive at Volkswagen which is considering plant closures in Germany.

Reporting by Rachel More; Editing by Rashmi Aich

Source Reuters