Germany avoids recession with surprise return to growth – business live

Rolling coverage of the latest economic and financial news, including German growth figures

8.54am GMT

Germany’s escape from recession is being overshadowed by weak economic data from China.

Fixed asset investment growth has fallen to its lowest level on record, at 5.2%, the National Bureau of Statistics reported. That suggests companies are reluctant to invest.

#CHN China triple disappointment:
1/ Industrial production ⬇️
2/ Fixed asset investments ⬇️
3/ Retail sales ⬇️

All three releases disappointed analyst expectations.

8.33am GMT

There are some signs that Germany’s economy could pick up, having effectively stagnated for the last six months, says Lee Hardman of Japanese bank MUFG.

He tells clients:

Continued growth in the service sector has helped to offset more acute weakness in the manufacturing sector.

Recent leading indicators have provided tentative signs of optimism that the German economy is close to the worst point and could begin to pick up gradually in 2020. The latest ZEW survey, trade, factory orders reports have all surprised to the upside. The global manufacturing PMI bottomed in July providing encouragement that the global industrial slowdown is beginning to ease as well

Continue reading…Rolling coverage of the latest economic and financial news, including German growth figuresBreaking: Germany grew by 0.1% in the last quarterEconomists expected another contractionConsumer spending, government and exports lifted growthQ2 GDP revised down to -0.2% 8.54am GMTGermany’s escape from recession is being overshadowed by weak economic data from China.Fixed asset investment growth has fallen to its lowest level on record, at 5.2%, the National Bureau of Statistics reported. That suggests companies are reluctant to invest.#CHN China triple disappointment:1/ Industrial production ⬇️2/ Fixed asset investments ⬇️3/ Retail sales ⬇️All three releases disappointed analyst expectations. 8.33am GMTThere are some signs that Germany’s economy could pick up, having effectively stagnated for the last six months, says Lee Hardman of Japanese bank MUFG.He tells clients:Continued growth in the service sector has helped to offset more acute weakness in the manufacturing sector.Recent leading indicators have provided tentative signs of optimism that the German economy is close to the worst point and could begin to pick up gradually in 2020. The latest ZEW survey, trade, factory orders reports have all surprised to the upside. The global manufacturing PMI bottomed in July providing encouragement that the global industrial slowdown is beginning to ease as well Continue reading…