The Bundesbank said the German economy, Europe’s largest, is set to slow after a rebound in the second quarter of the year.
“Signs of a slowdown in economic growth are increasing” in line with expectations, the Frankfurt-based central bank said in its monthly report today.
“The assessment that the German economy expanded strongly in the second quarter after a weather-related weak start to 2013 is being confirmed by current indicators. Important contributions to growth in the second quarter should come from industry and construction.”
While the Ifo institute’s measure of German business confidence increased for a second month in June and unemployment unexpectedly declined, factory orders, industrial production and exports slumped in May.
Germany’s overseas sales are being curbed as the 17-nation euro region, its biggest trading partner, struggles to emerge from recession and growth slows in China, its third-biggest export destination.
The Bundesbank last month lowered its growth projection for 2013 to 0.3 percent from 0.4 percent, and cut its 2014 outlook to 1.5 percent from 1.9 percent.
The economy expanded 0.1 percent in the three months ended March. The Federal Statistics Office will publish its initial estimate of gross domestic product for the second quarter on Aug. 14.
bloomberg.com
“The assessment that the German economy expanded strongly in the second quarter after a weather-related weak start to 2013 is being confirmed by current indicators. Important contributions to growth in the second quarter should come from industry and construction.”
While the Ifo institute’s measure of German business confidence increased for a second month in June and unemployment unexpectedly declined, factory orders, industrial production and exports slumped in May.
Germany’s overseas sales are being curbed as the 17-nation euro region, its biggest trading partner, struggles to emerge from recession and growth slows in China, its third-biggest export destination.
The Bundesbank last month lowered its growth projection for 2013 to 0.3 percent from 0.4 percent, and cut its 2014 outlook to 1.5 percent from 1.9 percent.
The economy expanded 0.1 percent in the three months ended March. The Federal Statistics Office will publish its initial estimate of gross domestic product for the second quarter on Aug. 14.
bloomberg.com
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