Bundesbank said in the latest monthly report released today that the German economy is regaining some momentum currently. It noted that “the economy has likely showed better momentum in the spring than at the start of the year.” Nonetheless ” it is unlikely that the high growth rates of the past year will be repeated, manufacturing was once again the key economic driving force.”
The report noted that car production increased sharply with pharmaceutical products. But intermediates goods remained weak. Household consumption remained a cornerstone for growth. Government consumption also rebounded. Also, “activity in the booming construction sector likely increased significantly, despite capacity constraints.”
