Ifo shares their latest findings on German business conditions
- 29.2% of companies surveyed say they can survive for 3 months or less
- 52.7% of companies surveyed say they can survive for 6 months or less
This relates to if the lockdown restrictions remain in place for a longer period of time. Ifo notes that "these are worrying numbers that point to a wave of insolvencies".
This is likely to capture sentiment among small and medium enterprises, rather than your multinational corporate firms. The only comforting news for them is that at least the restrictions are slowly being eased over the next few weeks.
However, that doesn't mean any quick return in terms of demand and that will also have a negative impact of profitability - merely prolonging the decay.
