3/18/2019, 12:35 PM (Source: TeleTrader)
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Bundesbank flags German manufacturing slowdown

Industrial production has lagged since the start of the year, subduing economic growth, Germany's central bank said on Monday in its monthly report. Policymakers also pointed to personal spending and construction as counterweights and expressed confidence they may turn yet higher. Manufacturing has shown weakness for three quarters in a row, according to the document.

The Eurozone's largest economy was on the brink of recession in the second half of last year. Factories struggled mostly in the automotive sector, which has cited the implementation of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). The set of exhaust gas standards brought gluts in the process and output suffered.

However, carmakers should rebound, but the "downturn is likely to continue" elsewhere in production. Bundesbank also highlighted the positive effects from the growth in employment and income prospects, together with the planned fiscal relief.

Baha Breaking the News (BBN) / IT