German economy ministry says current data points to a weak general economic trend in Q2
Comments by Germany's economy ministry
- Data points to slower growth in services sector as well
- Industrial activity remains sluggish, headwinds from foreign demand are still felt
- There are considerable downside risks due to trade/geopolitical tensions, Brexit
- But says that forces of economic upswing could be more prominent if the external environment settles
The worry for Germany now is that the struggles faced by the manufacturing and industrial sectors could potentially start to spill over to the services sector and exacerbate current dwindling economic conditions.
The economy is already seen stagnating in Q2 and if the more upbeat tone in the services sector begins to fade, it would start to raise recession risks in 2H 2019.