German firms' export outlook worsens in June, as per IFO data
The mood in Germany's export sector has taken a drastic turn for the worse, with a negative index of -1.0 points reported for June by the Munich Ifo Institute, a downward shift from the +0.2 points in May. The Institute acknowledges a discernible downtrend in the German export industry, indicating significant growth potential remains.
Apart from the gloomy outlook for the metal industry, there are expected gains in the coming months for makers of data processing devices and electronic products, furniture manufacturers, and beverage producers, as suggested by Ifo. Furthermore, steady development is anticipated from the machinery and electronic equipment industries as well as from the chemical and automobile sectors.
The Federal Statistical Office has revealed that in May, German exports to countries outside the EU saw a substantial drop. This decline was primarily due to a significant decrease in demand from China, as confirmed by the Office.
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Despite the overall bleak export outlook for June, as indicated by the Ifo sentiment index, some German companies, such as those in the data processing devices, electronic products, furniture, beverage, machinery, electronic equipment, chemical, and automobile sectors, are still expected to see positive growth in the coming months. However, German exports to countries outside the EU experienced a substantial decline in May, particularly due to reduced demand from China.
