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 to minus 3.7 points, marking the first increase after three consecutive months of declines.
This development suggests that the severe headwinds facing German exporters may be easing, although the indicator remains in negative territory.
The improvement in export expectations comes as the Ifo Institute has also 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 more optimistic outlook.
These factors are helping to support domestic demand and reduce uncertainty for businesses reliant on international trade routes.