German manufacturers more downbeat on export prospects due to Brexit - Ifo

BERLIN (Reuters) - The export expectations of German manufacturing firms weakened in July, partly due to concerns relating to Britain's vote to leave the European Union, a survey by the influential Ifo economic institute showed on Tuesday. "The decline can partly be explained by the uncertainty that has been created by the Brexit vote," said Clemens Fuest, president of the Munich-based Ifo institute. The drop came after export expectations in the manufacturing sector rose in the two previous months. In particular, the automobile and metals industries felt more pessimistic about prospects for their exports in the next three months, the survey of around 2,700 industrial firms showed. "Optimism in these branches has almost evaporated," Fuest said. Chemical firms only expect slow export growth but engineering firms and companies in the electrical sector expect to get extra impetus from abroad, he added. On Monday, Ifo's monthly business climate index showed morale among German firms fell only slightly in July. (Reporting by Michelle Martin; Editing by Richard Balmforth)