Survey: German export outlook improves, but not across all sectors

Expectations for Germany's export businesses have improved slightly, with a much-watched indicator rising from -5.6 to -3.7 points in June for the first time since three consecutive declines, a leading think tank said on Thursday.

However, the Munich-based ifo Institute warned against premature optimism.

"Exporters remain sceptical as to whether geopolitical uncertainty will decline sustainably," says Klaus Wohlrabe, head of surveys at ifo. "In addition, international competition remains strong."

The institute reported significant differences depending on the sector. Businesses in the electrical industry, for example, were optimistic and expect a significant rise in its exports, according to the statement.

"Beverage manufacturers are also more confident about international business, while the food industry expects a decline in international sales," it said.

Meanwhile, "the situation remains more challenging in the automotive and metal industries, which continue to anticipate declining exports."

The outlook is particularly bleak in the key automotive industry, dropping by 2.8 points to -17.9 points. 

Sentiment was only worse in the paper industry, at -21.5 points.