Germany confirms economy shrank in second quarter

Frankfurt, Germany: The German economy shrank by 0.1 percent in the second quarter, final data confirmed Tuesday, weighed down by sluggish private con...

Frankfurt, Germany: The German economy shrank by 0.1 percent in the second quarter, final data confirmed Tuesday, weighed down by sluggish private consumption and a drop in industrial investments.

"After the slight increase in the previous quarter, the German economy slowed down again in spring," said Ruth Brand, head of federal statistics agency Destatis.

The quarter-on-quarter contraction confirmed an initial estimate released by Destatis at the end of July, which surprised analysts who had been expecting a small uptick in growth in Europe's largest economy.

The April-to-June period noticeably saw a 4.1-percent plunge in investments in machinery and equipment, and a two-percent fall in investments in construction.

Household consumption was down 0.2 percent on the previous quarter, as were exports amid weak foreign trade.