Latest data released by Destatis - 14 August 2019

  • Prior (Q1) +0.4%
  • GDP (non-seasonally adjusted) 0.0% vs -0.3% y/y expected
  • Prior +0.6%
  • GDP (working-day adjusted) +0.4% vs +0.1% y/y expected
  • Prior +0.7%

Slight delay in the release by the source. The headline meets expectations and confirms that the German economy shrunk in Q2. The annual estimates are a tad better-than-expected so that will at least provide some comfort to the negative backdrop above.

Looking at the details, private consumption was better than Q1 and investments also improved but this was offset by falling construction activity. Trade was the main issue as it damped output, with exports falling faster than imports.

EUR/USD holds steady at 1.1169, little changed and still sitting in a narrow 15 pips range.