Pessimism among German exporters eases with economy past trough

Confidence among German exporters improved in May after officials within the country and around the world eased lockdown measures.

An Ifo gauge measuring trade expectations among manufacturers jumped by a record but remained below zero, indicating that pessimism receded even though it was still the prevailing sentiment. Companies in nearly all sectors continue to see declining exports, according to a survey of some 2,300 firms.

Carmakers reported the biggest jump in expectations, while pessimism also eased significantly in the electronics industry.

Germany’s export-heavy economy has suffered less from the implications of the coronavirus pandemic than its European services-reliant peers. The Bundesbank predicts a recovery should start in the current quarter as shops and factories reopen. Still, output is shrink more than 6% this year.