In the April Monthly Report, Bundesbank said growth picked up only moderately in Q1. Also, the underlying momentum of expansion remained subdued as dragged down by manufacturing downturn. The description of the manufacturing sector are rather dramatic, as orders “literally collapsed” and mode has “significantly deteriorated”.

Separately, German government spokesman Steffen Seibert said for now there is no need for a stimulus package to reinvigorate the economy. He emphasized Germany has a “very solid budget policy”. And, “we are coupling solid budgets with an increase in investments and this should in the coming years improve the basis for more growth.” Seibert added, “the budget stipulates investment spending that is significantly higher than in the previous legislative period and as such we see no need for a stimulus package.”

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