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German economic growth likely to slow over the summer: Bundesbank

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(Globalpost/GlobalPost)

BERLIN (Reuters) - The Bundesbank warned on Monday there were signs that growth in Germany would slow over the summer after Europe's largest economy probably grew strongly in the second quarter of this year.

"Given that orders were somewhat weaker again in April, production expectations for the coming months have recently been significantly scaled back. The same is true for export prospects in the short term," the Bundesbank said in its monthly report.

It added that an improvement in the labor market also seemed to be over for the time being.

But the Bundesbank said economic indicators for April, which have shown exports, imports and output rising, pointed to robust growth in the second quarter. Business sentiment also brightened in May.

It also said the construction industry was rapidly recovering from weather-related weakness in the first quarter.

The German economy contracted in late 2012 and only narrowly avoided a recession by growing 0.1 percent in the first three months of this year, largely thanks to private consumption.

(Reporting by Michelle Martin; Editing by Stephen Brown)

http://www.globalpost.com/dispatch/news/thomson-reuters/130617/german-economic-growth-likely-slow-over-the-summer-bundesbank