German Growth Sinks Into Negative As Trade War Hits Exports

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.

German Manufacturing Sector Trying To Recover But Trade Tensions Weigh

Germany manufacturing PMI came in like most European PMIs, soft as the global trade war and Brexit drama weighed. 45.0 was a 4-month high, but still the manufacturing sector contracted for a sixth month in a row. Growth in consumer goods was the brightspot.

Resiliant European Service Sector Contrasts With Weak Manufacturing Output

The European services sector strength contrasts with weak manufacturing conditions. Growth was led by Germany and Spain. Suggesting that the domestic economies aren’t as burdened by the global trade war and Brexit drama. Resilient rate of growth that has lost some momentum.

Fitch Affirm Germany Rating at AAA With Stable Outlook

Fitch Ratings affirmed Germany’s Sovereign rating and long term IDR’s and unsecured foreign and local currency bonds at ‘AAA’ with a stable outlook as expected. Germany ran a surplus last year and Germany’s fiscal position is expected to continue to improve.

German Household Consumption Driving Expansion says Bundesbank

The German Bundesbank in it’s monthly report said that Germany’s growth in the third quater may be somewhat slower than the first half of the year. The central bank said the economy is on a ‘sound’ path driven by household consumption’