The German central bank comments in its monthly report
- Economy may have contracted in Q3
- Sees risk of slowdown in exports affecting domestic economy as well
- There are increasing risks of a spillover from industrial slowdown to domestic demand
- However, a deep recession is not expected
It's a slow climb down for Germany and their high horse as they come to acknowledge the potential spillover effects from the manufacturing recession. With regards for a longer and more protracted slowdown, this is their comment:
"A recession in the sense of a significant, broader and longer-lasting decline in output with underutilised capacity is currently not in view."
I reckon it'll only be a matter of time before that outlook changes as well.
