Overview

• The Federal Statistical Office reported a 0.3% quarter-on-quarter contraction in the April–June period, worsening from the preliminary estimate of a 0.1% decline.
• Destatis said manufacturing and construction output came in weaker than previously assumed and household spending was revised down.
• ING’s Carsten Brzeski cited the reversal of first-quarter export front-loading to the U.S. and the first full impact of new U.S. tariffs introduced in the second quarter.
• Chancellor Friedrich Merz’s government has launched an investment push that includes a 500 billion-euro, 12-year infrastructure fund plus plans to cut red tape and speed up digitization.
• A consortium of companies has pledged at least 631 billion euros of investment over three years, while an EU–U.S. trade deal exists but remains a work in progress.