In its monthly report, Bundesbank warned that German economy will continue to struggle in the first half of 2019. The economy is unlikely to regain momentum with Weak orders in manufacturing, gloomy sentiment indicators and sluggish investments. It said that “all these suggest that the underlying pace of the economy should remain subdued at least in the first half of the year.”
Though, it also noted that “there are no signs that the slowdown is becoming an outright downturn.” In particular, the drag from auto exports is starting to normalize. Meanwhile, labor market remains healthy with private consumption picking up.
