(Reuters) -Sentiment among German exporters worsened further in September, falling to its lowest point since May 2020, according to a survey by the Ifo economic institute released on Tuesday.
In its fifth consecutive month of decline, the institute’s export expectations indicator fell to minus 11.3 points in September, from minus 6.5 points in August.
“Germany’s export economy is going through a weak phase,” Klaus Wohlrabe, head of surveys at Ifo, said.
“It’s likely that export demand won’t pick up again significantly until next year,” he added.
Interest rate hikes by central banks in their campaign against inflation have driven up financing costs for investments and made many projects unprofitable, weighing on sentiment.
Wohlrabe said higher interest rates were dampening demand for German goods.
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All sectors are facing a decline in foreign business, except for the manufacturers of leather goods, furniture and some companies in the food industry, the Ifo said in a statement.
Last month’s hopes for growth in the German chemical industry did not materialize in September, according to the survey. Car manufacturers also became more sceptical.
(Reporting by Amir Orusov and Rene Wagner, Editing by Rachel More)