Ifo remarks based on their latest survey of businesses in the month of July
The survey shows that German firms are expecting business to return to normal in an average of 11 months with services sector companies expecting things to normalise in 11.7 months while manufacturing sector firms expect it in 10.1 months.
If ‘normal’ means a return to pre-virus conditions, I reckon that may be a little too optimistic for the time being. Just be mindful that considering the current virus situation, global travel will at least be dead until 1H 2021 at the very least.
That in turn will feed to lower demand conditions – especially for the services sector – and as more businesses are impacted, it will also lead to sluggish labour market conditions i.e. weaker consumer purchasing power and eventually hurt other sectors as well.