Reuters reports that the Ifo institute survey showed that German business morale improved by less than expected in April as a third wave of COVID-19 infections and problems with supply of components in the industrial sector slowed a recovery.

Business climate index edged up to 96.8 from 96.6 in March. Economists had expected an increase to 97.8. Current Economic Assessment arrived at 94.1 points as compared to last month's 93.1 and 94.4 anticipated. The Expectations Index – indicating firms’ projections for the next six months, fell to 99.5 in April from the previous month’s 100.3 and better than the market expectations of 101.3.

"Both the third wave of infections and bottlenecks in intermediate products are impeding Germany's economic recovery," Ifo President Clemens Fuest said in a statement.