Exporters in Germany have reported a ‘considerable’ improvement in expectations, with the ifo Export Expectations index rising to 9.6 points in August from -2.8 points in July, according to the ifo Institute.
This increase was the largest recorded since June 2020, and the highest figure since February 2022, it noted.
‘Picking up speed’
“The export industry is picking up speed,” commented Klaus Wohlrabe, deputy director of the ifo Center for Macroeconomics and Surveys and head of surveys. “Exports, particularly to the EU are booming, while exports to China continue to be sluggish.”
The improvement was recorded across several manufacturing sectors. Electrical equipment manufacturers continued to report positive expectations, while companies producing data processing equipment and electronic and optical products also remained optimistic about their export prospects.
The ifo Institute said digitisation and high levels of investment in artificial intelligence are likely to be contributing to these expectations.
Automotive sector
Elsewhere, the automotive industry also reported a significant improvement in its outlook for exports. The sector had become more positive about its international sales prospects in August, adding to the broader improvement in sentiment across German manufacturing.
Manufacturers of metal products also reported ‘new confidence’ in their export prospects, according to the Institute.
However, the improvement was not shared across all manufacturing industries. Companies in the paper industry and those involved in metal production and processing continued to expect their exports to decline, the data showed. Read more here.
