Upswing in German ifo Export Expectations (April 2023)
Sentiment among German exporters has improved noticeably. The ifo Export Expectations for manufacturing companies rose to +6.9 points in April, up from +4.1 points in March. This is its highest level since February 2022. “Robust economic development in the US and the encouraging trend in China are increasing demand for German exports,” says Klaus Wohlrabe, Head of Surveys at ifo. “After a weak start to the year, exports have been able to grow again in the second quarter.”
In the automotive industry, export expectations have improved noticeably. In contrast, the indicator fell slightly among manufacturers of electronic components. For manufacturers of electrical equipment, rubber and plastic goods, and glass and ceramics, the positive and negative values are roughly balanced. Optimism has returned to the chemical industry, where the indicator climbed to its highest level since September 2021. Beverage manufacturers are also expecting significant growth.
In the furniture industry and among textile manufacturers, there is renewed confidence with regard to international business. Manufacturers of clothing and leather goods are highly optimistic that they will see a big jump in exports in the next three months. In the metal industry, export expectations did increase, but remain just inside negative territory. Manufacturers of wood products (except furniture) and printing companies expect exports to drop. The paper industry has yet to shake off all its concerns.
