Germany’s economy is likely to remain on a sound growth path in the third quarter but the pace of growth could end up being somewhat slower than the average for the first half of the year, Bundesbank said in its monthly report on Monday.
Accordingly, industry is not expected to make any meaningful contribution to aggregate growth.
The central bank assessed the situation in the labor market as remaining very favorable. However, it did not improve as much as in previous quarters.
According to official data, the largest euro area economy expanded at a slightly faster pace of 0.5 percent in the second quarter on domestic demand.