Mark Schrörs

German industrial production fell the most since early 2022, evidence of the struggle by Europe’s biggest economy to shake off a multi-year slump.

Confidence among German firms unexpectedly improved to the highest since 2022 after the European Union struck a trade deal with the US, despite some criticizing higher tariffs.

Die deutschen Unternehmen zeigen sich so zuversichtlich wie seit Anfang 2022 nicht mehr und planen erstmals seit zwei Jahren wieder steigende Investitionen. Das geht aus dem aktuellen Konjunkturbarometer von S&P Global Market Intelligence hervor.

Germany’s economy will stagnate this year, though a recovery is in sight thanks to plans to ramp up government spending, Chancellor Friedrich Merz’s independent panel of experts said.

Germany’s private sector unexpectedly shrank for the first time in four months as concerns over tariffs triggered a sharp drop in services activity.

Germany’s private sector grew at the quickest pace in 10 months on hopes that a massive increase in government spending will outweigh any hit from US tariffs.

Investor confidence in Germany’s economy soared by the most in more than two years as the country prepares for hundreds of billions of euros of infrastructure and military investments under its new government.

The euro-area economy managed to eke out growth at the end of last year after all, with Eurostat revising up its initial estimate.

German industrial production fell the most in five months at the end of 2024, extending the manufacturing sector’s malaise even as other data offer hope of a stabilization.

The European Central Bank’s borrowing costs are probably too elevated given the backdrop of weak growth, according to Governing Council member Madis Muller.