BERLIN- The mood among German exporters clouded over further in August although there were signs of improvement in the beleaguered chemicals sector, according to a survey published on Monday
The Ifo institute said export expectations slipped further to -6.3 points from -6.0 in July.
“German exporters continue to struggle with weak global demand,” said Klaus Wohlrabe, head of surveys at Ifo. “More and more companies are also complaining about being less able to compete at the global level.”
In the chemical industry, which is expected to decline overall this year amid weak demand and high energy costs, businesses were now expecting a rise in exports, according to the survey.
Germany’s energy-intensive chemical sector has been facing an unprecedented drop in order volumes as customers reduce their stocks in a high inflationary environment.
The sector is seen as a bellwether for the broader region’s economy as it produces material components used in various branches ranging from automotive and construction to agriculture and textiles.
Positive and negative responses were roughly balanced among automakers while the outlook for manufacturers of machinery and equipment has worsened further, Ifo said.
German exports stagnated in June, with a smaller than expected rise of 0.1 percent over the previous month, data from the federal statistics office showed.
A Reuters poll had predicted a month-on-month increase of 0.3 percent.
“Trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag,” said Carsten Brzeski, global head of macroeconomics at ING.
Supply chain frictions, a more fragmented global economy and China increasingly being able to produce goods it previously bought from Germany were all factors weighing on exports in June, Brzeki added. – Reuters
