German growth slows but remains robust


Economists forecast 0.4% sequential growth for the second quarter, the same as in the first quarter.

Destatis also revised upwards its growth estimate for the first quarter of the year to 0.7% from the initial estimate of 0.6%.

According to ForexLive, gains in Q2 economic growth were driven by domestic demand, with increases in state investment and private consumption.

Foreign trade, however, weighed on Germany's performance, it said, because imports grew more strongly than exports, on a quarterly basis.

According to the Financial Times, that's the fastest rate of annual growth since 2014.

Analysts at LBBW said the quarter-on-quarter increase in imports was just another sign of an economy in robust health and should go some way towards silencing critics of Germany's massive trade surplus.

"All in all, the German economy is still thriving and now the biggest risk is probably policy complacency", said Carsten Brzeski, an economist at ING.

Spain's economy grew by 0.9% in the April-to-June quarter, while Italy's preliminary data is expected on Wednesday. The Statistics Office will publish its detailed GDP growth data on August 25.

He added: "When it comes to the economy, it seems as if Angela Merkel sits in a "winner-takes-it-all" position". Inflation is expected to rise slightly to 2.7 percent in July from 2.6 percent in June.

Compared to the previous quarter, economic growth was strongest in the Netherlands and Latvia, with the Spanish economy also growing above average.

At 3.00 am ET, unemployment data is due from Turkey. The sequential growth is seen at 0.6% in the second quarter, the same as estimated initially.