The German economy is on track to grow by 0.2% in the fourth quarter, but the manufacturing industry is still in recession
) last week cut its forecasts for operating profit and sales growth due to a downturn in demand for passenger cars.
Thomas Gitzel, economist at VP Bank, said the Ifo survey showed “growth will not go into freefall for the time being” but that Ifo’s warning the manufacturing sector is stuck in recession was cause for concern. Detailed data released on Friday showed strong exports, state spending and consumers helped the German economy avoid a recession in the third quarter. The figures confirmed a preliminary reading of a 0.1% expansion on the quarter.
Aerial view of a container terminal in the port of Hamburg, Germany November 14, 2019. REUTERS/Fabian Bimmer
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