The business climate among German exporters improved to its strongest level since February 2022, according to the latest Ifo Institute survey. The export outlook index rose to 9.6 points in August from minus 2.8 in July, marking the sharpest monthly gain since June 2020.
The rebound reflects rising demand from European markets, offsetting persistent weakness in shipments to China. Survey head Klaus Wohlrabe noted that digitalization and artificial intelligence are boosting domestic industrial demand, particularly for data center infrastructure where German technology is in demand.
Export optimism remains particularly strong in the electrical equipment, computer and electronics, and optical products sectors. The automotive industry, which has faced prolonged challenges, also reported improved export prospects. Similarly, manufacturers of metal products expressed renewed confidence, while paper producers and metalworking firms anticipate declining exports.
The trade sector contributed to Germany’s second-quarter GDP growth of 0.3%, the third consecutive quarterly expansion. Total exports rose 2.0% year-on-year in Q2, driven by a 2.6% increase in goods shipments, while service exports remained flat compared with the prior quarter.
The Ifo data suggests that Germany’s export-driven recovery is gaining momentum, though risks remain tied to geopolitical tensions and uneven global demand patterns.
