Recent German Data as a Sign of Economic Slowdown?
Recent economic data from Germany were mixed, pointing to a modest growth in the second quarter. The German economy grew by a 2.5% in 2017 and most analysts expect only a moderate slow down to around 2% this year.
Yesterday, it was reported, that German industrial orders dropped in June by the most in nearly 1-1/2 years, suggesting that trade tensions caused by US President Donald Trump could limit economic growth.
Today, the German Economy Ministry reported, that industrial output rose 0.4% on the quarter in the April-June period despite a weaker-than-expected reading for June. In June alone, industrial output fell by 0.9%, missing the forecast for a drop on the month of 0.5%.
Separate data showed, that job vacancies hit a record high, underlining labor market strength that is boosting a consumer-led upswing. German vacancies grew by 25.000 on the quarter and 115.000 on the year to reach 1.21 million in the April-June period.
Germany will publish preliminary gross domestic product growth data for the second quarter next Tuesday. Analysts on average expect the quarterly growth rate to edge up to 0.4% from 0.3% in January-March, driven by private consumption and construction.