The economic recovery, which began with the first easing in May, continued into the summer months. On average, German companies assess their situation in August as being better than in previous months, and their business expectations have also risen for the fourth time in a row according to the latest ifo survey.
What is particularly striking is that overall expectations are more positive than they have been for almost two years. This means that optimism is once again spreading in most sectors, even in the industry that has recently been severely battered.
Only in the retail sector do the expectations of the ifo survey remain pessimistic. Here, fears of a second wave of corona and new restrictions have probably become stronger in recent weeks. The outlook for the construction industry also remains rather subdued. Unlike in the retail sector, however, the outlook for the construction sector is based on a very high level of production.
Companies still assess the current business situation as weak, even though the metrics have improved compared to the previous month. The infection figures worldwide are still very high, and in Europe they have recently risen again noticeably. This should also ensure that the outlook for the near future remains cautious despite all the optimism.
In any case, most German companies still have a long way to go before they return to normality.