Sentiment in Germany shows a mild improvement in July
The export outlook for Germany improved slightly in July 2025, according to the latest survey by the Munich ifo Institute. The ifo Export Expectations index rose from -3.6 points in June to -0.1 points in July, indicating that positive and negative responses are now roughly balanced[1][5].
The survey conducted by the Munich ifo Institute revealed different developments within various industries. Food producers expect a slightly growing foreign business, while companies in the metal production and processing sector anticipate declining exports[4][6]. On the other hand, the electrical equipment manufacturing industry expects an increase in exports, and companies in the mechanical engineering and textile industries foresee a stable export business[3][7].
The current export expectations show a less pessimistic mood among export-oriented companies. The beverage industry also expects an increase in exports, and confidence in the automotive industry is increasing, although the survey figures remain slightly negative[2][8].
Klaus Wohlrabe, Head of Surveys at ifo, noted that the export industry is "waiting" and many hope for a resolution of the tariff dispute, which contributes to varying uncertainty across sectors[1]. Despite the improvement in export expectations, the overall German business climate rose only modestly in July, with cautious optimism continuing amid a sluggish economic recovery[2].
Other economic indicators from the ifo survey suggest slow progress in employment and ongoing challenges for the self-employed, emphasizing a mixed economic picture despite the export outlook improvement[1]. The outlook for German exports remains fragile and dependent on external factors like tariff disputes and global economic conditions.
[1] The Local [2] Reuters [3] Handelsblatt [4] FAZ [5] ifo Institute [6] Wirtschaftswoche [7] Deutsche Welle [8] Bloomberg
- The food producers, in the context of the ifo Institute's survey, anticipate a slightly growing foreign business in the domain of finance, contributing to possibly favorable developments within the broader business sector.
- Meanwhile, companies in the electrical equipment manufacturing industry foresee an increase in exports, particularly in the area of business, signifying a strengthening sector that could boost the overall business climate.
