German business confidence set to fall amid fresh lockdown measures

Berlin, Dec. 18, (dpa/GNA) – The German economy is ending the year on a downbeat note, with a key indicator to be released on Friday expected to show business confidence falling for the third consecutive month due to pandemic restrictions.

The Munich-based Ifo institute is to release its business climate index, which is expected to have fallen to 90.0 in December, down from 90.7 in November, raising the prospect of a fresh slump in Europe’s biggest economy.

The latest report, which is based on a survey of 9,000 executives across Germany, comes after the government again imposed tough measures to head off a renewed surge in coronavirus cases.

The Ifo index plunged to a record low of 74.6 in April, as business confidence collapsed and Germany tumbled into a recession following the onset of the pandemic.

Since then the index had posted a series of gains after lockdown restrictions imposed during the first wave of infections were eased in May.

GNA