Key facts
- Germany's economy ministry reported that growth momentum likely slowed temporarily in the third quarter.
- The ministry stated that the outlook for industrial activity remains subdued.
- Higher energy prices, uncertainty, and financing costs are expected to limit short-term momentum from domestic demand.
Germany's economy ministry said on Wednesday that growth momentum likely slowed temporarily in the third quarter. The outlook for industrial activity remains subdued, while domestic demand is unlikely to provide much momentum in the short term because of higher energy prices, uncertainty, and financing costs, the ministry said in its monthly report.
In a previous report on September 14, the ministry had stated that Germany's economic momentum slowed at the start of the third quarter. This slowdown was attributed to a fading boom in energy-intensive industries and weakening domestic consumption amid higher energy prices. The ministry noted that a "special economic cycle" in energy-intensive industries, driven by increased foreign demand linked to the Middle East conflict, appeared to be weakening.
