German business morale improves despite virus uptick

A crowded party ship cruises over the river Main in Frankfurt on Sept 18.

The Ifo institute’s monthly barometer rose to 93.4 points from a seasonally adjusted 92.5 points in August, marking the fifth consecutive month in which sentiment rose.“The German economy is stabilising despite rising infection numbers,” said Ifo President Clemens Fuest. The Ifo index dived to a record low in April when Germany’s coronavirus restrictions closed factories and shops, before starting to pick up the following month as business activity gradually resumed.

“In the final quarter, there will probably be setbacks again,” said Uwe Burkert, economist at LBBW bank. “But all in all, we have so far come through the pandemic better than was feared in March or April.”

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