Bundesbank remarks in its latest monthly report

  • Services momentum to slow considerably, industrial supply chain issues to persists
  • Full-year growth likely to be "significantly" below June forecast of 3.7%
  • Inflation to continue rising for the time being, before gradually declining next year

This fits with the narrative surrounding the euro area economy at the moment, with the ECB also likely to tone down their optimistic take on the outlook derived during the summer. As supply and capacity constraints persist for a protracted period of time, expect that to weigh more heavily on the German economy going into next year.