FRANKFURT, Germany — A widely watched indicator of German business confidence has risen for a fifth month in a row as Europe’s largest economy rebounds from the coronavirus shutdowns – but the index remains below its long term average and uncertainty is high with virus cases rising.

The Ifo institute’s index released Thursday rose to 93.4 points in September from 92.5 points in August. The index is based on a survey of thousands of businesses about their view of current conditions and expectations for the future.

In this case the current assessment rose while the expectations part levelled off.

After shrinking 9.7% in the second quarter, the worst quarterly figure on record, the economy is rebounding from the severe shutdowns and restrictions on activity and movement of March, April and May.

Carsten Brzeski, chief eurozone economist at ING bank, said growth could rebound sharply with growth between 5% and 10% in the third quarter. But the recovery still faces hurdles and has a long way to go to regain its pre-pandemic footing.

“Given the recent softening of leading indicators, however, there is a risk of a double-dip in the fourth quarter,” Brzeski wrote in a research note, “unless social distancing rules are eased further; a very unlikely scenario given the latest increase in new COVID-19 cases.”

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

IBM partners with Japanese business, academia in quantum computing

TOKYO (Reuters) – U.S. tech firm International Business Machines Corp on Thursday launched a research partnership with Japanese industry to accelerate advances in quantum computing, deepening ties between the two countries in an emerging and sensitive field. Members of the…

James Moore Why Jeff Bezos should do more for Amazon workers

Two weeks of paid sick leave for all Amazon employees would cost less than 1 per cent of CEO Jeff Bezos’s fortune, according to the global consumer campaigning group SumOfUs. Yes, yes, I know. Most of Bezos’s wealth is tied…

Zoom to expand in U.S. with engineering centers in Phoenix, Pittsburgh

(Reuters) – Zoom Video Communications Inc (ZM.O) said Thursday it plans to hire 500 software engineers for research and development locations in Phoenix and Pittsburgh over the next two years, expanding its engineering workforce by about 60%. The San Jose,…

Cevian sees SSAB as healthiest steel partner for Thyssenkrupp: sources

FRANKFURT (Reuters) – Activist fund Cevian, Thyssenkrupp’s (TKAG.DE) No.2 shareholder, has identified Swedish steelmaker SSAB (SSABa.ST) as the financially strongest partner for a potential steel tie-up, two people familiar with the matter said. Among the possible partners, which include Germany’s…