Germany’s chemical companies have renewed pessimism over prospects for exports, a vital outlet, research institute Ifo said on Thursday.

The overall Ifo Export Expectations index fell to 3.8 points in February, down from 4.1 points in January.

“Once again, the chemical industry finds itself disillusioned: after a promising start to the year, companies now expect their export business to hold steady,” said Ifo.“The same applies to food and beverage manufacturers. In the metal industry, there was a noticeable drop in the number of sceptical voices; however, an upswing in international sales is not on the horizon.”

According to Ifo, export expectations in other petrochemicals-intensive sectors such as automotive, machinery and equipment, and furniture had also improved in February.

“[However, overall] Weak global demand is currently dampening hopes for German exports,” concluded Ifo’s president, Clemens Fuest.

The Ifo Export Expectations are based on around 2,300 monthly reports from manufacturers.Companies are asked to report their export expectations for the next three months, and they can describe their expectations as ‘increasing’, ‘unchanged’, or ‘declining’