Jens Weidmann, President of the Deutsche Bundesbank. (picture alliance/dpa)
The second quarter is set to show a decline in German economic growth, as exceptional factors that boosted output in the first quarter fade, Germany's central bank said on Monday in its monthly report for June.
"The basic economic trend remains weak," the Bundesbank said. "Decisive for this is the continuing fall off in industry."
Factors that boosted the economy in the first three months were fading or even going into reverse the Bundesbank reported.
Gross domestic product rose 0.4 per cent quarter-on-quarter in the first quarter, boosted by strong consumer demand and a boom in the construction sector, aided by a mild winter.
Vehicle sales were also strong after buyers had held back as new emissions standards came into force, but this factor had worked its way through the economy, the bank said.
Uncertainty over Brexit was likely to hit German exports. Stockpiling by British companies ahead of an expected Brexit date at the end of March boosted sales in the first quarter and would mean a reduced trade surplus in the second.
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