Overview

• Germany’s economy contracted 0.3% quarter on quarter in Q2, deeper than the initial −0.1% estimate, according to the Federal Statistical Office.
• Manufacturing and construction weakened, exports slipped 0.1% from Q1 and household consumption was revised down, while private investment fell 1.4% and government spending rose 0.8% following a legislated defense buildup.
• Mexico’s final Q2 GDP rose 0.6% quarter on quarter, revised from 0.7%, with services up 0.8% and industry up 0.7% as primary activities dropped 2.4%, INEGI reported.
• The Q2 print kept Mexico out of a technical recession after Q1 growth, though first‑half expansion of 0.9% was the weakest since 2020 and June’s IGAE advanced 0.2% month on month.
• Mexico’s inflation registered 3.49% year on year in the first half of August with core at 4.21%, and Banxico’s policy rate is 7.75% as markets anticipate further gradual reductions.