Latest data released by Destatis - 15 May 2019
- Prior (Q4) 0.0%
- GDP (non-seasonally adjusted) +0.6% vs +0.7% y/y expected
- Prior +0.9%
- GDP (working-day adjusted) +0.7% vs +0.7% y/y expected
- Prior +0.6%
Slight delay in the release by the source. German economic conditions rebound in Q1 but the annual estimates continue to suggest that economic growth is still rather sluggish to begin the new year. Nonetheless, it's an improvement to the end of last year but it won't do much to really reignite optimism.
There's still US auto tariffs to come and US-China trade tensions lingering, so those are potential setbacks for the German economy as we look to navigate through the second half of the year. EUR/USD firms to 1.1210 currently but is little changed on the day.
