Reuters reports that the economy ministry said that the German economy will pick up steam in the third quarter but business activity will cool again in the final three months of the year.

"Overall, there will likely be a noticeable increase in economic output in the current third quarter," the economy ministry said in its monthly report, adding there were signs of a normalization of growth in the fourth quarter.

It added that the spread of new coronavirus mutations and their influence on the infection dynamics could cloud the economic outlook.