The German economy shrank by 0.1% in the second quarter of 2024 compared with the previous three-month period, the statistics office reported today, confirming preliminary data.
"After the slight increase in the previous quarter, the German economy cooled down again in spring," statistics office president Ruth Brand said in a statement.
In the first quarter of 2024, German gross domestic product rose by 0.2% quarter on quarter.
The office revised its year-on-year change for the second quarter in price and calendar-adjusted terms to 0%, up from a previously reported -0.1%.
Meanwhile, German consumer sentiment is set to tumble going into September as slightly rising unemployment, job cuts and insolvency's drive down income expectations, pushing back hopes of a stable economic recovery, another survey showed today.
The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), fell to -22 points going into September from a slightly revised -18.6 the month prior and below a forecast for -18.2.
A tumble in income expectations brought down overall sentiment, falling to 3.5 points from 19.7, as an increase in purchasing power felt by many households was not enough to compensate for their rising labour market uncertainty.
The recovery seen in August was only a blip due to the European Championship, said NIM consumer analyst Rolf Buerkl.
"Slightly rising unemployment figures, an increase in company insolvencies and staff reduction plans at various companies in Germany are causing a number of employees to worry about their jobs," said Buerkl, pushing back hopes for a sustainable economic recovery driven by private consumption.
Unemployment rose more sharply than usual at the start of summer break, while economic institutes have predicted a rise in corporate insolvencies.
There have also been a string of recent job cuts announced at German firms such as Deutsche Bahn, Bayer and ZF Friedrichshafen.
