Overview

• The statistics office revised second‑quarter GDP to a 0.3% quarter‑on‑quarter decline from an initial 0.1%, citing weaker manufacturing, construction and lower private consumption estimates.
• Gross fixed investment fell 1.4% on the quarter, including a 1.9% drop in equipment and a 2.1% decline in building, while exports slipped 0.1% and trade provided no support.
• The Bundesbank expects output to roughly stagnate in the third quarter and sees no growth impulse from industry or construction.
• US–EU trade frictions and volatile US policy are raising uncertainty for German exporters, with new 15% US tariffs on most EU goods in effect since early August.
• Public finances improved with an estimated €28.9 billion first‑half deficit, about 1.3% of GDP, as the August PMI edged up to 50.9, signaling tentative resilience.