ifo Institute: Companies Expect 11-Month Wait for Business to Return to Normal
German companies expect it will be 11.0 months on average before their business situation returns to normal. This finding is based on responses to the latest ifo Business Survey, conducted in July. The coronavirus is having a particularly lasting effect on service providers. They do not expect to see a return to business as usual until after 11.7 months. In construction, it is expected to take 11.1 months; in trade, 10.3 months; and in manufacturing, 10.1 months. “The road to normalcy is still very long for many companies,” says ifo researcher Klaus Wohlrabe. “Even once all public restrictions are lifted, companies will still have to deal with their consequences.”
Arts and entertainment activities have been hit particularly hard by the coronavirus pandemic; a return to normal is expected here only after 17.5 months. The film industry and cinemas expect to wait 16.7 months; hotels 16.0 months; and travel agencies 14.6 months. In contrast, security services are expecting normal business to resume after only 3.8 months.
In industry, textile manufacturers are particularly pessimistic, expecting a return to normal in 14.5 months. In mechanical engineering, the wait is expected to be 12.0 months; for clothing manufacturers 11.1 months; for beverage producers 8.1 months; and in the chemical industry 8.0 months. Computer manufacturers are the most optimistic at 6.8 months.
In wholesale the expectation is 10.5 months, in retail 10.0 months.
