Germany’s Export Expectations Dip Slightly (July 2023)

Sentiment in the German export industry has deteriorated slightly. The ifo Export Expectations slipped to -6.0 points in July, down from -5.9 points in June. “Demand from abroad is developing rather weakly,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is also the result of restrictive monetary policy in the US and Europe, the effects of which are gradually being felt.”

“At present, there is also little to suggest that this situation might change in the short term,” Wohlrabe adds. Silver linings in manufacturing are far and few between, with most industries expecting exports to decline over the next three months. As in the previous month, only clothing manufacturers and the beverage industry expect noticeable growth in international business. Among manufacturers of machinery and equipment and in the electrical and electronics industry, the outlook is increasingly grim. Carmakers, too, are expecting weak development in their export business, and manufacturers of leather goods and textiles are expecting significant declines here as well.

Clemens Fuest
President of the ifo Institute