The business climate deteriorated during the lock-down months in Germany, as it did all across the globe. German Ifo business climate indicator fell from above 95 points to below 75 points, which was the lowest level in ever, even lower than during the 2008-09 crisis. But in May in started improving, increasing to 79.5 points ant to 86.2 points in June, which was revised a tick higher today to 86.3 point. Today’s report showed another improvement in the sentiment, so the situation seems to be heading in the right direction. Below is the report for July:

German Ifo Business Climate Report, Released by Ifo – 27 July 2020

Slight delay in the release by the source. The headline beats estimates slightly and there are continued improvements in the expectations and current assessment portion. This feeds into more optimism of a rebound in Q3 but once again, tells little about how things are going to be later in the year as the economy adjusts to the “new normal”.