MNI BRIEF: New Lockdown in Germany To Weigh on Recovery - IFO

New lockdown measures throughout Germany will weigh heavily on the economic recovery in Q4, the Ifo institute said Friday. "Expenditures on social consumption services are seen falling sharply and private consumption is not likely to grow anymore until the end of the year," the Munich-based thinktank said.

The institute estimates that revenues in the hospitality sector will drop to 20% of normal levels, it regained 75% in the summer compared to pre-crisis levels, while social consumption is seen at just 10% compared to normal due to the second lockdown.

Consumption behaviour already had changed in October due to rising infection numbers, with corporate revenues already declining the Ifo Institute said.