Germany's export outlook worsens amid U.S. tariff concerns: ifo
The ifo Export Expectations index fell to -3.9 points in June from -3.0 in the previous month, signaling an overall decline in confidence within Germany's export-driven economy.
The apparel sector reported the bleakest outlook, while sentiment also weakened significantly among food and beverage producers, automakers, and metal product manufacturers.
Germany's automotive sector, a cornerstone of its industrial base, has faced persistently weak export expectations and remains especially exposed to trade tensions. The United States has already imposed a 25-percent tariff on cars and car parts imported from the European Union (EU).
"The tariff threats from the U.S. are still on the table. An agreement between the EU and the U.S. has yet to be reached," said Klaus Wohlrabe, head of surveys at ifo. "This uncertainty is lowering exporters' expectations."
Latest data from the Federal Statistical Office showed that German exports dropped by 1.7 percent month-on-month in April, while shipments to the United States, Germany's largest export market, fell sharply by 10.5 percent.
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