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German economy to power ahead as industry regains strength

Europe
23.10.2017
By our dpa-correspondent and Europe Online    auf Facebook posten  Auf Twitter posten  
Berlin (dpa) - The strong economic momentum that Germany built up during the first half of the year has carried through into the third quarter.

Europe‘s biggest economy is still in a strong upturn and "could have maintained the high growth rate of the first half-year in the third quarter of 2017," the Bundesbank said its monthly report released on Monday.

"The German economy is still in a strong upturn," the nation‘s influential central bank said.

"Supported by buoyant export demand, industry is likely to retain its role as a main pillar of a strong economy," the bank said.

"The order situation of industrial companies is excellent," wrote the bank, despite what it said was a more cautious mood prevailing among manufacturers.

In addition, the Bundesbank also warned that the strong first-half impetus from the construction business is also likely to decline, with private consumption also losing some of its recent strength.

However, the bank is not expecting a sustained downturn in household spending.

"Against the backdrop of very good consumer sentiment and a favourable labour market along with income prospects, no lasting deterioration in consumption should be expected," the bank said.

 

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