The tariff war is also hitting German industry

The ifo (ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München e.V.) sentiment index, which measures export expectations, fell to minus 3.6 points in August from a two-year high of minus 0.3 points in July.

Disappointment is spreading among German exporters, commented Klaus Wohlrabe, head of ifo surveys. Although the 15 percent tariff imposed by the United States is lower than feared, it will still weaken the momentum of exports, Wohlrabe added.

According to the survey, export expectations worsened in August, with the most significant negative change recorded for food and beverage manufacturers.

Metal manufacturing and processing companies also expect a decrease in foreign orders.

In contrast, there has been little change in the mechanical engineering industry compared to the previous month, and companies expect stable export turnover.

According to the ifo statement, there is currently cautious optimism in the chemical industry.

The survey also revealed that furniture companies and manufacturers of electronic products also expect an increase in foreign orders.

A year ago, in August 2024, the index quantifying the business expectations of German industrial exporters was lower than in August this year, at minus 4.7 points.