German business confidence falls to lowest level since May 2020

A woman wearing a protective mask walks across the skyline of the financial district at sunset as the spread of the coronavirus disease (COVID-19) continues in Frankfurt, Germany, October 26, 2020, REUTERS/Kai Pfaffenbach/

Sign up now for free and unlimited access to

BERLIN, Sept 26 (Reuters) – Germany’s economy is heading for recession, the Ifo institute said on Monday, as it reported an unprecedented drop in business morale since the early days of the COVID-19 pandemic.

The Ifo Institute said its business climate index fell to 84.3, a sharper decline than the 87.0 forecast by economists polled by Reuters.

The August reading was revised up slightly to 88.6 from 88.5.

The ifo said its business climate index in September hit its lowest level since May 2020.

All four sectors of the German economy have experienced a downturn, the institute said, which said pessimism had increased considerably as it looked ahead to the coming months.

Sign up now for free and unlimited access to

By Rachel Moore and Miranda Murray

Our Standard: The Thomson Reuters Trust Principles.

Source link