Latest data released by Destatis - 14 November 2018
- Prior +0.5%
- Flash GDP (non-seasonally adjusted) +1.1% vs +1.2% y/y expected
- Prior +2.3%
- Flash GDP (working-day adjusted) +1.1% vs +1.3% y/y expected
- Prior +2.0%
Slight delay in the release by the source. That's the weakest quarterly growth recorded since Q1 2013 as the German economy slumps in Q3. And it's the first time since Q1 2015 that the German economy actually contracted for the quarter. On a working-day adjusted level, that's also the weakest annual growth pace since Q3 2014.
In short, it's an abysmal report but markets certainly never had much hope for a good reading to come here. However, this suggests that there are deep issues plaguing the German economy and it's hard to envisage them just disappearing suddenly as we get into Q4.
