Economic Expectations Dip Slightly in June, Ifo Institute Reports
The Munich-based Ifo Institute, a leading economic research institution, has released its June export expectations index, which shows a slight decline from the previous month. The index value dropped to minus 3.9 points in June, down from minus 3.0 points in May.
According to Klaus Wohlrabe, the head of Ifo surveys, the uncertainty surrounding the US tariffs and the pending agreement between the EU and the US is weighing on the export expectations of German businesses. “The uncertainty is dampening the expectations of exporters” he said.
The Ifo Institute’s survey revealed a significant decline in the export expectations of the food and beverage industry, with many companies expecting a decline in exports in the coming months. Similarly, the expectations of the food processing industry have also turned negative, with a decline in exports anticipated.
The automotive and machinery industries, which had previously shown positive export trends, are now experiencing a stalemate in their foreign business, the institute reported.
In contrast, the furniture and leather goods industries are optimistic about their export prospects, while the manufacturers of electrical equipment are cautiously optimistic, according to the Ifo Institute’s findings.