Summer boom beckons for German economy after winter COVID blues
German business morale brightened to hit a two-year high in May as COVID-19 curbs were eased and infections fell, heralding a swift summer recovery after the economy shrank more than expected in the first quarter.
With many firms reporting a build-up of supply bottlenecks, Tuesday’s Ifo business climate index readout showed a jump to 99.2, up from April’s revised 96.6 and beating the 98.2 forecast in a Reuters poll of analysts.
“The German economy is picking up speed,” Ifo President Clemens Fuest said.
The survey among some 9,000 firms in manufacturing, the service sector, trade and construction showed that businesses were more satisfied with their current situation and optimistic regarding the coming six months.
It pointed to a quarterly growth rate of 2.6% from April to June and 2.8% from July to September, Ifo economist Klaus Wohlrabe told Reuters.
In the first quarter, GDP contracted…