German Industrial Sector Headed for Sustained Slowdown: Finance Ministry

Business uncertainty is on the rise in German over increasing external risks to the economy, leading to a slowdown in the labor market

Arslan Butt•Thursday, August 22, 2019•1 min read

According to the German finance ministry, business uncertainty is on the rise in German over increasing external risks to the economy, leading to a slowdown in the labor market. Germany’s export-oriented economy has been under pressure over the escalating US-China trade war for some time now, while Brexit uncertainties have also plagued the economy.

In its monthly report, the ministry states that Germany’s industrial sector appears to be heading towards a sustained slowdown. So far, the German economy has remained relatively protected over robust domestic demand, especially in the areas of household demand and construction.

However, according to the ministry, the rate of growth in employment has been slowing down lately, especially in the manufacturing sector. This could weigh on the domestic demand in times to come.

Data released last week revealed that the German economy had contracted 0.1% QoQ during Q2 2019. Tax revenues of the federal government and states have grown by 2.3% YoY during H1 2019, but have come in slightly lower than the estimated 2.4% growth rate.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.