Overview

• Destatis revised second‑quarter output to a 0.3% quarter‑on‑quarter decline from an initial 0.1%, erasing the prior quarter’s 0.3% gain.
• Weaker manufacturing and construction and a downgrade to household spending drove the revision, with goods exports down 0.6% and machinery investment down 1.9%.
• Economists say a first‑quarter export surge from front‑loading ahead of U.S. tariffs reversed in the second quarter, marking the first full period under higher duties.
• An EU–U.S. deal announced in late July still leaves most EU goods facing 15% tariffs and cars at 27.5% until further EU steps, keeping exporters in limbo.
• Chancellor Friedrich Merz’s government is pushing a long‑term investment drive, including a €500 billion infrastructure fund, while analysts caution a durable recovery may not emerge before next year.