9/23/2019, 12:24 PM (Source: TeleTrader)
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Bundesbank: Germany may be in slight recession

Export-oriented activities led the recent slowdown in the Eurozone's largest economy, Germany's Bundesbank said on Monday in a monthly report. Its analysts pointed again to a likely contraction in gross domestic product in the third quarter, which would be the second in the row and signify a technical recession. However, according to the document, it wouldn't be a "cause for concern just yet."

"Such a situation does not necessarily represent the end of the period of aggregate expansion, as in this case the contraction in economic activity has been confined largely to industry. Moreover, from today’s vantage point, only a slight decline in GDP is to be expected overall," the central bank said and went on to call it "a cyclical return to normality" and the shift back from "overheating."

Data from car production indicated a strong rebound for August, the labor market is strong, the construction sector "has continued to flourish" and consumers are optimistic, the update notes. On the flipside, it highlights the impact from global trade friction.

Baha Breaking News (BBN) / IT