MNI BRIEF: Restrictions Seen Into September, Say German Firms

Lockdown measures could continue until the middle of September, according to ifo's latest Business Survey, with manufacturers expecting restrictions on public life and businesses to last another 7.4 months, service providers anticipating another 7.5 months, and construction 7.3 months, looking at late Summer or early Autumn before full restrictions are lifted. Manufacturers do not expect their own businesses to return to normal for another 10.2 months, the survey found. The figures for service providers, retail and construction were 10.6 months, 9.3 months, 10.4 months, respectively.

Klaus Wohlrabe, head of surveys at Ifo said Germany's vaccination campaign has "yet to have a decisive impact" on businesses' expectations, which could be a blow to the European Central Bank's hopes of a pick-up starting from Q2 and accelerating into H1, although perhaps more in tune with the view of Bank of Greece deputy governor Theodore Pelagides.