Bundesbank has confidence in German economy
THE German economy will pick up speed again in the final months of the year following a summer slowdown, the country’s central bank predicted.
With domestic consumption set to remain strong, the improved outlook was driven by the manufacturing sector, which is banking on a rise in industrial orders, and higher export expectations, the Bundesbank said in its monthly report.
“In the final quarter, German economic growth is likely to strengthen considerably following a summer slowdown,” it said. “Sentiment has brightened significantly lately.”
Europe’s top economy expanded by just 0.2 percent in the third quarter of the year, official data showed last week, down from 0.7pc and 0.4pc in the first and second quarters.
The eurozone as a whole grew by 0.3pc in the third quarter.
Like the Bundesbank, analysts were sanguine about Germany’s disappointing quarter, pointing out that business confidence reached a twoyear high in November as fears receded over any immediate blow to trade after the Brexit vote in June. –