Germany’s Economy Ministry said in the monthly reported that the industrial economy continues to develop “sluggishly” as “headwind” from foreign demand remains “palpable”. Additionally, current data suggests a “calmer” pace in the service sector. And this indicates a “weak basic economic trend” for Q2.
The report further noted that “after the cautious development in the second quarter, the buoyant forces could again come to bear stronger if the external environment calmed down again.” But there are “significant downside risks” due to trade conflicts, Brexit and geopolitical tensions.
