Germany’s Bundesbank said in the monthly report that the rebound in Q1 was largely due to one-off factors. Underlying momentum in the economy remained weak and growth might not sustain.

It noted that “these effects, which had largely driven growth after the turn of the year, are expected to lapse or even reverse… Moreover, downturn forces continue to be prevalent in industry, and they may even intensify somewhat.”

In addition, automakers were facing weaker external demand. Global car sales were expected to contract further in 2019, extending the drop in 2018.

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