- Unexpected boom in manufacturing and construction likely led to expansion in first quarter
- But there is still no evidence of a lasting improvement in the German economy.
- Demand for industrial products domestically and internationally remains low and continues to decline
- Rising interest rates and economic uncertainty are holding back investment
- Households are also still hesitant to spend
- It is not certain that the increase in economic production will continue in the second quarter.
Germany continues to be the sick man of Europe at the moment and this perception has not changed as the second quarter of this year begins. Weak demand and low consumption activity are the two main problems. And this is generally a factor that prompts the ECB to consider easing its policy as soon as possible.
This article was written by Justin Low at www.forexlive.com.
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