German business morale posts record rise, biggest since reunification in 1990Christian Fernsby ▼ | June 24, 2020
German business morale posted its strongest rise in June since records began and Europe's largest economy should return to growth in the third quarter after the coronavirus pandemic hammered output in the spring, the Ifo institute said.
Business German factory
"Companies' assessments of their current situation were somewhat better. Moreover, their expectations leaped higher. German business sees light at the end of the tunnel," Ifo President Clemens Fuest said.
Ifo economist Klaus Wohlrabe said the economy should return to a growth path in the third quarter after an expected double-digit contraction between April and June.
"We have passed the economic trough, the low point is behind us and things are looking up again," Wohlrabe said. "Export expectations have risen significantly."
An Ifo current conditions index rose to 81.3 from 78.9, and an expectations index surged to 91.4 from an upwardly revised 80.5. ■