Sentiment in Germany’s export sector has worsened.
Ifo export expectations fell sharply in March, dropping to -0.9 points from +2.7 points in February. “The war in Iran has significantly raised uncertainty among exporters” said Klaus Wohlrabe, head of the Ifo surveys. “Many companies fear a decline in demand in key markets”.
Automotive manufacturers, however, are anticipating a substantial boost to exports; the indicator reached its highest level since June 2020. The furniture, electronics, and beverage industries also expect higher foreign sales. In contrast, the machinery sector shows little dynamism, as do metal production and processing. Paper manufacturing, the printing industry, and the chemical sector still see declining exports.
“How export development unfolds in the coming months will depend strongly on the course of the conflict” Wohlrabe added.
