Comments by Germany’s economy ministry
- Industrial sector is going through weak phase but domestic impetus remains strong
- Order levels, business expectations point to continued weakness in manufacturing
- Production in 1H 2019 will be significantly weaker than in 1H 2018
- Indicators point to subdued exports in the coming months
- Weak phase in manufacturing will be more than compensated for in other areas of the economy in Q1 2019
The two pillars holding up the economy so far to start the year are the services and construction sectors. I reckon that may be enough for Germany to avoid recession-like growth but overall, the economy is still struggling and the outlook doesn’t look bright amid further slowdown in global growth and potential US auto tariffs to come.