German automotive industry optimistic of export prospects

Export expectations in Germany's manufacturing sector rose in July to 6.9 points from the -2.2 in the previous month with the automotive industry among the most optimistic due to economic recovery in many countries.

Production in Germany's car industry was halted at some sites during the lockdown as companies were already struggling to shift toward electric vehicles.

But cautious optimism is now spreading among German exporters, with the automobile sector among the most upbeat.

Last week, Daimler identified signs of recovering demand for Mercedes-Benz models and electric vehicles while Volkswagen expects modest growth in China's premium car segment this year.

BMW also posted better second-quarter sales in China.

The Ifo institute said that chemical and electronics companies feel more optimistic about their export prospects, while the mechanical engineering firms became less pessimistic.

Experts see the German economy plunging by double digits in the second quarter when the pandemic almost halted economic activity completely.