economy

German economy could slow in third quarter, Bundesbank warns

Germany has unexpectedly struggled in recent months with poor industrial output and trade figures dragging down sentiment

Reuters
16:28 September 19, 2016

Frankfurt: German economic growth could slow in the third quarter, primarily due to weak manufacturing export demand, the Bundesbank said on Monday, downgrading its outlook for the Eurozone’s biggest economy after a slew of subdued data. Germany, the 19-member currency bloc’s economic powerhouse, has unexpectedly struggled in recent months with poor industrial output and trade figures dragging down sentiment, suggesting that the Eurozone’s already subdued growth expectations may still be too optimistic. Industrial production fell the most in 23 months in July while exports unexpectedly posted their steepest drop in nearly a year, adding to evidence that manufacturing is losing momentum as overseas demand, particularly in Asia, continues to wane.