BERLIN (AP) 鈥� The German economy appears to have returned to slight growth in the April-June period after shrinking for two consecutive quarters, the country's central bank said Monday.
Germany鈥檚 national statistics office said in late May that by 0.3% in the first three months of this year, marking the second consecutive decline that is one definition of a recession. Gross domestic product declined by 0.5% in last year's fourth quarter.
In its monthly report, the Bundesbank said economic output appears to have 鈥渋ncreased slightly鈥� in the second quarter, without quantifying the expected gain.
It said private consumption apparently stabilized, thanks to a solid labor market, pay increases and the lack of a further significant increase in inflation. It added that supply bottlenecks declined, which together with a solid cushion of orders prevented a worse showing in the industry and construction sectors.
The central bank did, however, point to declining demand from foreign customers, higher costs for financing investments at home and a decline in business confidence. It said the economic recovery over the rest of this year could be 鈥渟omewhat more hesitant" than it forecast last month.
A month ago, the Bundesbank forecast that Germany's GDP would shrink by 0.3% this year before recovering to grow by 1.2% next year and 1.3% in 2025.
The national statistics office is due to release preliminary second-quarter GDP figures on July 31.
The Associated Press
