Overview
- Germany’s Federal Statistical Office confirmed zero quarter‑on‑quarter GDP growth in Q3, with exports down 0.7% and private consumption off 0.3% for its first quarterly drop since late 2023.
- The Ifo business climate index edged down to 88.1 in November and export expectations fell sharply to −3.4 from +2.2, with Ifo’s Clemens Fuest saying companies doubt a near‑term recovery.
- Manufacturing and construction reported weaker expectations, services showed pockets of improvement led by tourism, and retail signaled a disappointing start to the holiday season.
- Statisticians reported equipment investment rising 1.1% and government consumption up 0.8%, while construction investment declined 0.5%, underscoring uneven momentum across the economy.
- Economists see only a slight uptick in Q4 activity and broadly project a 2026 rebound tied to state spending, yet analysts and a Forsa poll for the BDA highlight slow reforms and widespread business dissatisfaction with policy delivery.