Slowdown in machinery exports points to weakening German economy
21/08/2019 14:19
BERLIN, Aug 21 (Reuters) - Trade conflicts and a weakening
global economy have hit growth in Germany's export-reliant
machine-building sector, data showed on Wednesday, adding to
signs that Europe's largest economy could slip into a recession.
Exports grew by just 0.9% to 89.2 billion euros ($99
billion) in the first half of the year, according to figures
released by industry association VDMA, as growth in the first
quarter was all but wiped out by a contraction in the second.
"The uncertainty triggered by the trade conflict between the
United States and China in particular, as well as the lack of
prospects for an agreement on Brexit, are hurting our
export-focused sector," said Ralph Wiechers, chief economist at
VDMA.
Machine exports grew by 3.8% in the first quarter and fell
by 1.8% in the three months that followed.
The German economy contracted by 0.1% in the second quarter,
prompting calls for Finance Minister Olaf Scholz to ditch the
country's balanced budget rules and draft a stimulus package.
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The VDMA data, which the association said is based on
figures from the Federal Statistics Office, showed exports to
the United States had risen by 7.8% in the first six half,
accounting for more than 11% of total output. But demand from
China rose by just 0.6%.
($1 = 0.9006 euros)
(Reporting by Thomas Escritt
Editing by Joseph Nasr and David Holmes)
((Thomas.Escritt@reuters.com; +49 (0)30 28885211; Reuters
Messaging: Thomas.Escritt.thomsonreuters.com@reuters.net;
Twitter: @tomescritt))