By admin Confidence among German exporting businesses improved in February in a potential sign of recovery, a leading think tank said.
The Export Expectations index of the Munich-based ifo Institute rose to 2.6 points this month, up from -0.8 points in January, as most manufacturers were more optimistic regarding international business.
Expectations strengthened among manufacturers of electronic and optical products, manufacturers of food and furniture as well as across the automotive and the metal sector, while companies in the important chemical sector “are expecting exports to decline,” ifo said.
“The export economy is starting the new year with a bit of tailwind,” said Timo Wollmershäuser, head of forecasts at the institute.
“However, it’s still too soon to talk of a broad-based and dynamic recovery.”
Meanwhile, uncertainty regarding US President Donald Trump’s trade policy has spiralled following last week’s US Supreme Court ruling that struck down many of the tariffs imposed on nearly all of the country’s trading partners.
Soon after the ruling was announced, Trump said he would impose worldwide import tariffs of 10% to the US, citing a different legal basis. On Saturday, he raised the duties to 15%.
But on Tuesday, a global rate of 10% came into effect, according to a bulletin by the US Customs and Border Protection agency, less than the rate last floated by Trump.
The rapidly changing trade conditions have caused uncertainty for businesses around the world, as well as for governments, many of which had previously negotiated separate trade deals with Washington.
In light of the developments, the EU Parliament decided on Monday to delay voting on the implementation of an EU-US tariff deal which was agreed last year.
dpa