Germany heads for recession

STORM clouds are gathering over the German economy amid fears the eurozone’s industrial powerhouse is lurching towards recession.

There is now a one in three chance Germany will suffer a slump in the coming months, according to a report by a leading think-tank.

A separate report by another influential German research group showed morale among the country’s investors has fallen to its lowest level for more than five years.

Confidence has been hit by a sharp fall in industrial production, ructions on financial markets and the prospect of a trade war between the US and China.