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In recent months, both survey and hard data have been pointing to slowing growth in Germany, according to analysts at BNP Paribas.

Key Quotes

“In June, the IFO climate index declined again, as companies reported a further deterioration of the actual business situation. However, signs of stabilisation can be observed.”

“In June, the PMI composite index of manufacturing and services actually strengthened more than expected. Nevertheless, the risks remain elevated as the German car industry is a possible target in the US-EU trade conflict.”

“Consumers are shrugging of these geo-political worries and the strong rise in consumer prices, largely due to petrol prices. They are more concentrating on the good labour market situation and substantial gains in purchasing power following recent generous pay deals.”