The finalised Q2 GDP report was released earlier today and confirmed the initial GDP estimate, which implies a quarterly decline in activity of 0.2% (+1.2% y/y).
The initial GDP report had not provided a detailed breakdown of the components, but did mention that construction and net exports were the culprits. This is confirmed in today's detailed report, which shows that construction investment dropped 4.2% q/q, more than the -3.2% expected, following a similar sized gain of 4.1% in Q1. Net exports also dropped as imports rose 1.6% while exports gained 0.9%.
The domestic consumption side of the report also disappointed slightly as private consumption rose 0.1% vs. 0.2% expected while government consumption also gained just 0.1% vs. 0.3% expected.
Despite the slowdown in Q2 we remain comfortable with our full-year forecast for German GDP growth of at least 1.5% (consensus: 1.8%).