Germany's economy ministry comments in its monthly report
- German economy is weighed down by global weakness
- But a pronounced recession is not expected
- Services, construction growth is largely compensating for slowdown in manufacturing
- Drop in unemployment was surprising
- Economic indicators do not point to a turnaround
It is with little doubt that if things continue down this path, a technical recession is imminent for Germany. Lawmakers and policymakers may brush off risks of profound economic weakness but it is getting harder to ignore by the day in my view.
As I mentioned last week, all you have to do is look at the PMI figures and you get the sense of why a recession looks to be inevitable - especially now that the manufacturing recession is starting to spill over to the services sector:
