Analysts at TD Securities suggest that they’re in line with consensus in looking for German GDP to post a 0.4% q/q gain in Q2, only slightly ahead of the 0.3% reading in Q1.
Key Quotes
“While retail sales showed a more pronounced pick-up in Q2, industrial production did not, and the latter indicator has a much tighter relationship with GDP growth.”
“We also have the ZEW survey for August today, where we’ll be watching for any signs of stabilisation in sentiment after the agreement between Juncker and Trump pushed back any prospects for auto tariffs. With expectations at their lowest level in July since the Eurozone crisis, we look for them to bounce from -24.7 to -22.0 (mkt -20.0), but with a more sluggish pick-up in growth through the middle of the year, we expect current conditions to slip a bit further, from 72.4 to 70.6 (mkt 71.1).”
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