Comments by Germany's central bank in its monthly report
- Growth weakness during the summer has been due to car makers
- That was a result of the emission rules switch
- Economy is to rebound once they adjust to new emission standards
- Industry slump could be a temporary issue
- Growth is fundamentally intact with domestic demand still robust
They're starting to get more creative with finding reasons for the slowdown seen this year. But with the fact that US aren't threatening to slap auto makers with tariffs this year, there should be significant improvement in factory activity for the time being. But the outlook still remains rather cloudy. As mentioned before, the only good thing driving up the economy now is domestic demand so German authorities will be hoping that will continue into Q3 and Q4 this year.
