The German economy is faltering as we have seen with PMI and sentiment. Brexit and trade wars helped Germany Q2 preliminary GDP come in negative as expected triggering further selling in the German DAX and world stockmarkets already down after a big miss in Chinese growth.
The German economy is faltering as we have seen with PMI and sentiment. Brexit and trade wars helped Germany Q2 preliminary GDP come in negative as expected triggering further selling in the German DAX and world stockmarkets already down after a big miss in Chinese growth.
Highlights
Germany’s gross domestic product contracted by a seasonally-adjusted 0.1 percent on quarter in the three months to June 2019, following a 0.4 percent expansion in the previous period and matching market expectations, a preliminary estimate showed.
See: German Manufacturing Weakness Continues as PMI Hits Seven Low
Net external demand contributed negatively to the GDP, mainly due to a slump in exports, while fixed capital formation in construction also declined.
GDP Growth Rate in Germany averaged 0.51 percent from 1970 until 2019, reaching an all time high of 4 percent in the second quarter of 1970 and a record low of -4.50 percent in the first quarter of 2009.
GDP -0.1% vs -0.1% q/q expected Prior (Q1) +0.4%
The German economy expanded by a calendar-adjusted 0.4 percent year-on-year in the second quarter of 2019, following an upwardly revised 0.9 percent growth in the previous three-month period and beating forecasts of 0.1 percent, a preliminary estimate showed.
On an unadjusted basis, the economy stagnated, after a 0.8 percent advance in the first quarter.
GDP Annual Growth Rate in Germany averaged 2 percent from 1971 until 2019, reaching an all time high of 7.20 percent in the first quarter of 1973 and a record low of -6.80 percent in the first quarter of 2009.
GDP (working-day adjusted) +0.4% vs +0.1% y/y expected Prior +0.7%
GDP (non-seasonally adjusted) 0.0% vs -0.3% y/y expected Prior +0.6%
The annual estimates are however better than expected thought hat has been largely ignored with the fixation of the negative yield curve, 2 year lower than 10 year notes in the UK and US this morning.
Private consumption was better than Q1 and investments also improved but falling construction activity and trade hurt. Exports are falling faster than imports.
Source: Trading Economics
From The TradersCommunity News Desk