German economy shows weakening production, rising unemployment and falling retail sales

According to the Bundeswirtschaftsministerium, Germany entered the third quarter with a loss of momentum across key economic indicators. Production in the manufacturing sector decreased in July, particularly within the automotive segment, while energy output and building activity posted slight increases. Order books showed a mixed picture, with large contracts boosting figures but smaller orders slipping.

Retail turnover, excluding vehicle sales, fell to its lowest level in more than half a decade, driven by higher consumer prices and rising energy costs. Inflation rose in August, largely due to energy price spikes, though core inflation stayed steady. The labour market showed a small uptick in unemployment, surpassing three million, and employment numbers slipped slightly. Corporate insolvencies remain elevated, with a notable rise in filings over the past year.