Overview

• Destatis revised second‑quarter 2025 GDP to minus 0.3% quarter on quarter from an initial minus 0.1%.
• The Bundesbank’s August report projects stagnation in the third quarter and now considers a slight full‑year GDP increase possible.
• Weaker manufacturing and construction drove the downgrade, private consumption was revised lower, fixed investment fell 1.4%, and exports slipped 0.1%.
• New U.S. tariffs of 15% on most EU goods from August 7 elevate export risks for Germany, with the Bundesbank warning that uncertainty remains high.
• Some offsets emerged as the composite PMI edged up to 50.9 in August and the state deficit narrowed to about 1.3% of GDP in the first half.