"Economic output is likely to increase slightly again in the second quarter," it said, after the country reported 0.2% growth in the first three months of the year. Germany's services sector is likely to grow further in the April-June period, driven by rising household incomes and consumer spending, it said. "Rising disposable household incomes are likely to gain the upper hand over consumer uncertainty," the Bundesbank said. After helping the economy to a rise in the first quarter, production in energy-intensive sectors should steadily improve, the report said. But Germany's labor market is likely to remain robust and wages look set to continue to rise rapidly.

Source: Wall Street Journal May 22, 2024 11:58 UTC