Economics

German Businesses Are Optimistic About Recovery in 2021

  • Ifo business climate index rises to 92.1 in Dec.; est. 90.0
  • Current conditions and expectations gauges both improved

Shoppers in Mannheim, Germany.

Photographer: Peter Juelich /Bloomberg
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German businesses are hopeful that Europe’s largest economy will pick up in the first half of next year.

A gauge measuring expectations for the next six months rose to 92.8 in December from 91.8 the previous month, according to the Ifo institute. Companies were also more optimistic about the current situation, a sign that tough new coronavirus restrictions only affect certain sectors.