BERLIN

German companies’ export expectations increased slightly but still remained in the red in December, as the country’s export economy ends the year “on a disappointing note,” according to Munich-based ifo Institute on Thursday.

Germany’s export industry sentiment remained at minus 3.1 points in December, slightly up by 0.7 points month-on-month.

The automotive and mechanical engineering sectors remained largely cautious this month, as both sectors expect their exports to decline.

“The outlook for the first quarter of 2026 is rather subdued,” said Klaus Wohlrabe, head of surveys at ifo. “Any real revival in exports just isn’t happening.”

Additionally, the food sector expects its exports to fall, albeit at a slower rate than the previous month, while electronic and optical exporters remain “largely optimistic about the coming months,” driven by expectations of global business.

Electrical equipment exporters expect only a slight growth in their exports despite months of “temporary euphoria,” according to ifo.