The results of a survey published by the Ifo economic Institute showed that sentiment in the German export industry improved slightly in November, ending a five-month decline. However, in general, the industry is rather cautious about how foreign business will develop.
The indicator for export expectations rose to -5.9 points from -6.5 points in October.
“Companies are unsettled but are still waiting to see which trade policy Donald Trump will ultimately implement. In addition, the dollar has appreciated strongly since the election, which may benefit exporters", says Klaus Wohlrabe, Head of Surveys at ifo.
The survey also revealed that the metal industry continues to be the hardest hit, with significant declines in exports expected. There has been a slightly negative trend in mechanical engineering for months. Companies in the automotive sector are also expecting a reduction, but not as strong as in October. Food and beverage manufacturers are in the best position and expect exports to rise. In the chemical industry, positive and negative outlooks are almost in balance.
Meanwhile, some analysts believe that the volume of imports from Germany to the United States may initially increase in the coming months, as American companies will increase purchases of goods before the possible imposition of duties, which will make them more expensive.