The outlook for German exports has shown signs of stabilization, with the Ifo Institute's external demand indicator rising in June.
The metric, which tracks business expectations for foreign sales, improved from minus 5.6 points to minus 3.7 points, marking the first increase after three consecutive months of decline.
While the figure remains in negative territory, the narrowing deficit suggests that the pressure on German manufacturers from abroad may be easing.
This development comes as the Ifo Institute recently upgraded its broader economic forecast for Germany.
The research body cited a combination of increased state expenditure and a de-escalation of tensions in the Middle East as key drivers for the improved outlook.
The stabilization in export expectations aligns with this broader positive revision, indicating that external headwinds may be less severe than previously feared.