Germany Q2 preliminary GDP +0.5% vs +0.4% q/q expected

Latest data released by Destatis - 14 August 2018

• Prior +0.3%
• GDP +2.0% vs +2.1% y/y expected
• Prior +2.3%
• Non-seasonally adjusted +2.3% vs +2.5% y/y expected
• Prior +1.6%

Slight delay in the release by the source. A notable rebound on the quarterly reading but the seasonally adjusted yearly estimate misses expectations and shows a slower growth compared to Q1. That is certainly not a good sign.

The euro isn't moving much on the figures here as we await the Eurozone second reading to come later in the day. The worry for Germany now is that if Q3 continues to display this same tepid tone, particularly now that we're seeing a fall in trade and exports demand.