The results show brightening outlooks among thousands of German businesses, particularly in manufacturing and industry, where the index rose in all important sectors. Retailers were somewhat less pessimistic than the month before, despite collapsing sales. For hospitality businesses such as hotels and restaurants, “the situation remains difficult,” the Munich-based institute said, while “in the tourism sector there is cautious optimism again regarding the vacation season.”
The outlook brightened despite caution from German Health Minister Jens Spahn, who on Friday noted that infection numbers have stopped declining in recent days. Elementary schools and kindergartens reopened in 10 of the 16 German federal regions on Monday but widespread restrictions on business activity remain in force. Manufacturing businesses such as the auto industry, a major employer, have been able to cope better with anti-pandemic measures than companies that depend on face to face contact with customers.