By Marco Babic
ZURICH(MaceNews) – German business sentiment is seen improving for a fourth consecutive month in August, according to the median forecast for the closely followed Ifo Business Sentiment Index.
Sentiment is expected to rise to 92.4 in August from 90.5 in July, according to the median of forecasters surveyed by Econoday, with responses ranging from 92 to 93.
Both current conditions and expectations are expected to improve, with the assessment of the current situation rising to 87 from 84.5 in August. The median for expectations over the next six months is expected to rise to 98.1 in August from 97.0 the previous month, according to the survey.
These developments would help confirm the view of the Bundesbank, which In its monthly report for August said that while coronavirus has led to a historic decline in Germany’s economic output, there is reason for optimism. The economy started on a recovery path in May after the first phase of easing containment measures.
‘’Current indicators suggest that this upward movement is continuing during the summer months, “ the central bank said.
Earlier this month, the ZEW institute reported that its measure of economic sentiment increased to 71.5 for August after a decline in July to 59.3 from 63.4 in June.
Ifo will release the results at 10:00 am Central European time on August 25 in Munich.
For a link to the Bundesbank’s summary assessment, click
https://www.bundesbank.de/en/tasks/topics/german-economy-on-recovery-path-following-historic-slump-841302