Germany: Economic stuttering but no slump ahead

At 1.5%, the German economy last year recorded its weakest GDP growth since 2013. Calendar-adjusted GDP growth also expanded by 1.5% following a whopping 2.5% in the previous year. 

Financial assets: Weakest growth in seven years

The financial assets of German households – despite significant losses in the last quarter – will remain above the 6 trillion mark in 2018, but only just: by the end of the year they should be around EUR 6,010 bn.

Germany: Economic cycle risk politics

The sentiment in the German economy continued to deteriorate in December. The ifo business climate index fell to its lowest level for more than two years. 

Germany: Industry records weakest quarter in four years

Seasonally adjusted industrial production rose by only 0.2% in September compared with the previous month. On average in the third quarter, production was thus 0.9% below the level of the second quarter. It last recorded a similarly weak development in the second quarter of 2014.

Sentiment more or less stable

After the strong improvement in sentiment in August, the expected counter-movement in September was significantly lower than expected. Good news came from the manufacturing sector, where expectations were on a seven-month high. We expect solid economic growth in the second half of 2018, despite continuing high uncertainty.

Industry again with a poor start to the quarter

Seasonally adjusted industrial production fell by 1.1% in July compared with the previous month. It is now 0.9% below the average level of the second quarter. 

Labor market loses some momentum

The number of unemployed fell by 8,000 in August compared to the previous month on a seasonally adjusted basis. The basic trend thus remains clearly positive. However, the momentum has weakened somewhat recently.

Economy breathes a sigh of relief

Under the impression of at least a temporary easing of tension in the trade dispute with the US, the mood in the German economy improved noticeably in August.

Economic momentum increases slightly

The German economy picked up some momentum again in the second quarter. Real gross domestic product increased by 0.5% seasonally adjusted compared to the previous quarter, after a slightly upward revised 0.4% in the first quarter.