Economic Sentiment Improves Amid Trade Tensions Easing
The Ifo survey of German exporters has shown a significant improvement in May, with the index rising to -3.0 points, up from -9.4 points in April. According to Klaus Wohlrabe, the head of Ifo surveys, the easing of trade tensions has brought relief to exporters, but caution is still warranted, as a comprehensive agreement between the US and the EU on tariffs has not been reached.
The survey reveals a marked increase in export expectations in the machinery, automotive and electrical industries, with companies no longer anticipating a decline in exports. In contrast, the metalworking industry has seen little change, with most companies still expecting a reduction in exports.
The chemical industry, on the other hand, has not benefited from the easing of trade tensions, with export expectations declining. The beverage industry still expects an increase in exports, although with less optimism than previously. The food industry also anticipates more foreign orders.