(Bloomberg) -- German companies operating abroad are the most upbeat in two years — but they don’t expect that to aid their own situations, according to an industry lobby survey.

“There are signs of an upturn on many global markets — this gives many companies hope that the mood will improve again,” said Volker Treier, who is in charge of international business at the DIHK Chambers of Industry and Commerce.

Presenting the AHK World Business Outlook spring survey on Tuesday, he added that the “improved economic expectations have not yet materialized in an equally strong upturn in international trade — and therefore also not in the business of German companies abroad. Skepticism and uncertainty remain.”

About a third of the 4,300 companies polled expect an economic upturn at their international locations in the current year — up from 22% in the autumn. Some 19% of the executives anticipate the economy to slow down compared to 28% in the last survey. Decreasing prices and the prospect of interest-rate cuts are improving their mood.

At the same time, the German companies don’t assume this brighter outlook will impact their own business — their expectations have not changed compared to the the previous survey, staying below the level of 2023 and the long-term average. 

The industry lobby warned that this will hold back investments at companies’ international locations.

The lack of skilled workers, low demand, higher labor costs and uncertain economic policy conditions are putting pressure on an upturn particularly in Europe, the executives said in the survey. On a global level, companies’ concerns about weak demand from China have increased — 80% of respondents see this as a risk. Further threats are geopolitical tensions and trade conflicts.

“The weak development of German foreign trade at the turn of the year and the slight improvement in business expectations and investment intentions point to a challenging year, despite small glimmers of hope,” Treier said. 

--With assistance from Libby Cherry.

©2024 Bloomberg L.P.