By Maria Martinez
BERLIN (Reuters) -Confidence among German firms outside Germany is rising significantly while it remains subdued among those at home, a survey by the association of German Chambers of Industry and Commerce DIHK showed on Thursday.
The AHK World Business Outlook, based on more than 3,500 responses from around 90 countries, showed that 44% of German companies abroad expect better business, while at home, only 15% do.
“For many companies, international markets are an anchor of stability,” said DIHK’s head of foreign trade Volker Treier. “There they demonstrate that they can hold their own in the competition – even if Germany as a business location is currently providing them with little tailwind.”
Abroad, 29% of companies want to increase their investments, while only 16% plan cuts.
In terms of personnel, 33% intend to add staff, while 17% anticipate reductions. In Germany, however, companies planning cutbacks far outnumber those planning to expand.
U.S. trade policy also continues to be felt worldwide, with 44% of German companies at their foreign locations reporting negative or very negative effects from tariffs and export controls.
Although German companies’ willingness to invest worldwide has recovered after the tariff shock in the spring, there is still no investment boom, particularly in the U.S., the report said.
(Reporting by Maria Martinez; Editing by Alexandra Hudson)
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