German manufacturers' expectations in export growth rose significantly in December, research group Ifo institute reported on Tuesday.
The outlook value increased to 8.0 balance points in December from 6.7 balance points in November, the Munich-based think tank said.
According to the report, export expectations rose in several key sectors, including the metal processing industry and the chemicals sector.
However, automotive manufacturers are skeptical and do not expect to see any growth in exports.
"Expectations were fueled by the U.S. Fed's announcement of an interest rate increase, which pushed up the U.S. dollar exchange rate," Ifo president Clemens Fuest commented, adding that German exporters hope that their foreign business will also improve in 2017.
The Ifo Export Expectations are based on around 2,700 monthly reports from manufacturers, who are asked to report their export expectations for the next three months.