Negative outlook from exporters fails to move German stocks
German export expectations weakened considerably in March compared to February, dropping to their lowest figure since October 2012, according to one of the country’s leading think tanks.
Export expectations among manufacturers in the automotive and metals industries have in particular weakened, and declines in exports are expected, survey results published by the Ifo Institute showed today.
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Expectations in manufacturing fell to 1.4 balance points in March, from 7.2 balance points in February. This month’s low score compares to the 16.3 registered in March 2018.
The Dax Index, which follows the performance of the 30 biggest listed German companies, was unfazed by the figures, however, rising 0.4 per cent by just after midday. The market yesterday registered data from Ifo that showed confidence among manufacturers to be at its lowest since November 2012.
The Ifo’s employment barometer, released today, also declined markedly. It fell to 101.6 points in March after a score of 102.9 points in February.
The institute said: “In manufacturing, the employment barometer receded into negative territory for the first time since July 2016. The marked economic slowdown in manufacturing is also making itself felt in the recruitment of new employees.”
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“In construction, the barometer fell slightly. However, the boom in construction continues to require additional personnel,” it said.