The German economy is unlikely to rebound in the first quarter as the manufacturing slowdown continued, the Bundesbank said Monday.
“The economic situation remained subdued after the turn of the year,” the Bundesbank said in its monthly report.
While the manufacturing sector could remain the drag on growth for a third straight quarter, construction and private consumption are expected to extend support.
Troubles in the automobile industry continued to damp the industrial economy in the first quarter.
The rebound witnessed in the vehicle industry after the decline in output in the second half of 2018 due to the introduction of the WLTP emission testing regime can no longer be expected for the first quarter, the bank noted.
The Bundesbank’s expected assessed the developments in the construction sector as favorable and expect private consumption to pick up further.
They also said the development on the labor market is positive with all labor demand indicators growing.
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