Covid-19 forces German business climate to fall backwards

Berlin, Jul 27 (Prensa Latina) The Ifo Institute of Munich reported that uncertainty due to the Delta variant of SARS-CoV-2 coronavirus led to a 0.9 point drop in the index that measures the business climate in Germany.

July 27, 2021
00:30

The Ifo Institute also noted that the indicator reached 100.8 points (uncertainty).

The main German economic barometer, which is based on a survey of 9,000 companies, decreased for the first time since the beginning of the year. Analysts were surprised.

They said that the decisive factor for the decline is the assessment of future business. The value of this index decreased, while that of the current situation improved again.

Ifo President Clemens Fuest noted that bottlenecks in the supply of intermediate goods and concerns about a further increase in the number of contagions are weighing on the German economy.

He said that optimism at the top management level had declined significantly. In the services sector, one of the sectors that benefited most from the relaxation of measures against Covid-19, the business climate deteriorated.

However, Fuest noted that service providers continue to expect a turnover to increase, although not as strongly as in June.

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