German Economy Expects a Decline in Foreign Trade. The Ifo Institute’s index of export expectations, which measures the outlook of German companies, fell to -6.1 points in December, down from -5.8 points in November.
“The export industry is not showing any dynamism even at the end of the year” said Klaus Wohlrabe, head of the Ifo Institute’s surveys. “Companies are not benefiting from the positive economic development in other countries, unlike in previous years.”
Many core industries in the manufacturing sector are expected to see a decline in exports, with the metal industry being the most affected, as was the case in the previous month. The textile and clothing manufacturers also expect a decline in foreign trade. The automotive industry has had a gloomy outlook for half a year, and the chemical industry’s export performance has been stagnant, similar to the whole year. The food and beverage industry, on the other hand, still expects significant growth in its foreign sales, and the manufacturers of electrical equipment have recently shown a bit more optimism about the outlook abroad.