Sentiment is improving within Germany’s export sector, according to the latest data from the Ifo Institute. September saw a significant rise in Ifo’s export expectations, jumping to +3.5 points from -3.0 points in August.
While the increase signals a positive shift, Klaus Wohlrabe, head of Ifo’s surveys, cautioned against premature conclusions. “A sustainable upswing is not yet in sight” he stated. “Global trade flows are currently undergoing realignment and the German export sector is still in the process of defining its role within this evolving landscape.
The automotive industry is demonstrating particularly noticeable optimism regarding its overseas business over the next three months. The corresponding indicator has risen to 16.7 points, the highest level recorded since April 2023. Similarly, furniture manufacturers and producers of electrical equipment anticipate a rise in foreign demand. The beverage industry maintains a positive outlook, albeit slightly less buoyant than in the previous month. Food manufacturers, who had previously observed sharp declines, saw a rebound in September, with the indicator now hovering just below the negative range.
Conversely, the engineering sector anticipates fewer orders from abroad. Companies in the metals, textiles and apparel industries continue to face challenges in the export market.