Latest data released by Destatis - 24 August 2018

  • Final GDP (non-seasonally adjusted) +2.3% vs +2.3% y/y prelim
  • Final GDP (working-day adjusted) +2.0% vs +2.0% y/y prelim
  • Exports +0.7% vs +1.4% q/q expected
  • Prior -1.0%; revised to -0.3%
  • Imports +1.7% vs +1.5% q/q expected
  • Prior -1.1%; revised to -0.2%
  • Private consumption +0.4% vs +0.6% q/q expected
  • Government spending +0.6% vs +0.6% q/q expected
  • Capital investment +0.5% vs +0.8% q/q expected
  • Construction investment +0.6% vs +1.8% q/q expected
  • Domestic demand +0.9% vs +0.6% q/q expected

Slight delay in the release by the source. GDP prints are in-line with preliminary readings. Still awaiting the details of the report.

Alright, details out now. Once again domestic demand remains robust as it improves from the +0.4% in Q1. However, investment has noticeably slowed down and exports once again looks soggy. That pretty much sums up the German economy in Q2 and the same problems have so far persisted in early Q3 data.

If the US turns on the heat with auto tariffs, it's going to only intensify the slowdown in the German economy as we head into 2019.