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German car sector among biggest winners as export expectations pick up

BERLIN (Reuters) - Export expectations in the manufacturing sector of Europe’s largest economy rose in July, with the automotive industry among the biggest winners, the Ifo institute said, in a boon for a sector that has been hit hard by the coronavirus pandemic.

The car industry, spearhead of Germany’s export-driven economy, has taken a beating from the pandemic that halted production at some sites during a lockdown that came as companies were already struggling to shift away from diesel- and petrol-powered cars toward “green” electric vehicles.

The Ifo institute said its index tracking export expectations in the manufacturing sector rose to 6.9 points in July from -2.2 the previous month thanks to an economic recovery in many countries.

“Cautious optimism is spreading among German exporters,” Ifo said. “The automobile sector is one of the biggest winners. After some very tough months, the export business should pick up again.”

Daimler (DAIGn.DE) last week flagged signs of recovering demand for top-end Mercedes-Benz models and electric vehicles and Volkswagen (VOWG_p.DE) has said it expects slight growth in China’s premium car segment this year.

BMW (BMWG.DE) also posted higher second-quarter China sales.

Source:https://www.reuters.com/article/us-germany-economy-exports/german-car-sector-among-biggest-winners-as-export-expectations-pick-up-ifo-idUSKCN24T0IO




 
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