Sentiment is improving within Germany’s export sector, according to the latest data released by the Ifo Institute. The Ifo export expectations indicator registered a significant increase in September, rising to +3.5 points from -3.0 points in August.
While this marks a positive shift, Klaus Wohlrabe, head of Ifo surveys, cautioned against premature assumptions of a broad recovery. “A sustainable upswing is not yet in sight” he stated. “Global trade flows are currently undergoing a period of realignment and the German export sector is still defining its position within this evolving landscape.
The automotive industry demonstrates particularly noticeable optimism regarding international business over the coming three months, with the relevant indicator reaching 16.7 points – its highest level since April 2023. Similarly, the furniture and electrical equipment manufacturing sectors anticipate rising overseas demand. The beverage industry maintains a positive outlook, albeit with a slight moderation compared to the previous month. Food manufacturers, who had previously experienced substantial declines, witnessed a recovery in September, with the indicator now only marginally negative.
However, the engineering sector anticipates fewer orders from abroad. Businesses in the metals, textiles and apparel industries continue to face challenges in the export market.
