German exporters' confidence grows in shocking mood reversal
The mood among Germany's exporters has changed markedly in just a month's time, according to the ifo Institute. Its index, which tracks the export expectations in multiple sectors, rose from negative territory, -26.7, all the way up to 2.3 points in June, leading ifo Institute president Clemens Fuest to declare "German industry is embarking on the road to recovery." At its lowest point, the institute's monthly survey of 2,300 exporters collapsed to a horrendous -50.0 points in April. That's the worst result the institute has ever recorded. That being said, there's never been a recovery in sentiment like the one in June, so the prudent thing to do is take all of the figures with a grain of salt. Nevertheless, even German car manufacturers were speaking of a significant increase in exports over the coming months, as were pharmaceutical companies. But not everyone thinks the worst is behind us. Expectations in the chemical sector remained stuck at May's disappointing levels, while companies in the electrical engineering and mechanical engineering sectors were actually predicting a fall-off in sales.