(Bloomberg) -- Investor confidence in Germany's economic recovery has been hit by the new business restrictions imposed because of resurgent coronavirus infections.
ZEW's gauge of expectations dropped for a second month in November. The reading of 39.0 is the weakest since April, when the first wave of the pandemic ravaged Europe's largest economy.
The dip might yet prove to be temporary. The survey was conducted before news on Monday that Pfizer Inc. and German company BioNTech SE could be close to rolling out a vaccine. Global stock markets rallied on that announcement, with the German benchmark DAX Index up the most since May.
Still, the vaccine is no quick fix. Manufacturing and distribution will take time, social and business curbs remain in place for now, and the damage created by the pandemic is likely to be lasting.
Unemployment is rising, and companies -- particularly in services -- are struggling to survive. The European Commission has lowered its 2021 forecast for the euro-area economy, governments are stepping up support, and the European Central Bank has flagged the likely need for more monetary stimulus.
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