ifo Export Expectations Fall (May 2023)

Sentiment in the German export industry is markedly worse. The ifo Export Expectations fell to plus 1.8 points in May, down from plus 6.5 points in April. This is the lowest level since November 2022. “Global interest rate hikes are slowly having an effect on demand,” says Klaus Wohlrabe, Head of Surveys at ifo. “The German export economy lacks momentum.”

In the automotive sector, companies have severely curbed their export plans. Following recent expectations of significant growth, businesses are now forecasting a decline. Manufacturers in the metal and textiles industries also expect their international sales to fall. In the chemical industry and among manufacturers of electrical equipment, positive and negative outlooks are more or less balanced. By contrast, manufacturers of data processing equipment are optimistic about the development of their international business, as are clothing manufacturers.

Clemens Fuest
President of the ifo Institute