Germany: The business climate has eased following the rise in cases

The business climate in Germany fell in October for the first time in six months as companies worried about rising coronavirus cases and were more cautious in the coming months, according to research by the German Ifo institute. “Companies are significantly more cautious about developments in the coming months,” Ifo president Clemens Fuest said in a statement at the institute. “In light of the growing number of cases, “German businesses are becoming more and more anxious,” he said. “Declining consumer confidence” , combined with a series of unprecedented rescue and support packages, have led to a strong or recovery in the third quarter from a 9.7% dip in the second quarter, but the rise in coronavirus cases has raised concerns that economic activity may slow again. Fears that the second wave of the pandemic will lead to a new recession Ifo’s current index clearly marks the end of the recovery and the beginning of fears of a second recession. ”Ifo economist Klaus Folabe forecast 2.1% growth for the fourth quarter, but can be very optimistic if the increase in cases causes the imposition of a second quarantine. The increase in cases in France, Italy “Spain is also affected by exports,” he said, adding: “The real blow will be if schools and kindergartens need to be closed. This would have a major impact on the economy and industry. “German Chancellor Angela Merkel wants to avoid this scenario and reiterated her call on Germans to limit social contacts and continue to travel as little as possible. “Automakers are doing really well now,” he said. “The latest figures for the German economy have been mixed. Consumer confidence has plummeted to November as fears of a second wave Another survey on Friday showed that private sector activity increased in October for a fourth consecutive month. Manufacturing expansion accelerated, but activity in the coronai sector slowed down, according to a survey last Thursday. The service sector shrank, showing that the economy is operating at two speeds.

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