German third-quarter growth was downgraded Friday with official data showing it expanded even more weakly than previously thought, in a new blow for Europe’s top economy as it battles multiple headwinds.
The final reading of 0.1 percent growth confirmed the eurozone’s traditional growth engine had narrowly dodged a technical recession, following a contraction in the previous quarter.
But it was down from a preliminary figure of 0.2 percent growth quarter-on-quarter, representing more bad news as the economy struggles with challenges from a slowdown in its crucial manufacturing sector to weak demand for key exports.
The downgrade went against predictions from analysts surveyed by financial data firm FactSet, who had expected no change.
“The data once again emphasises the extent of the current crisis in Germany,” said LBBW bank analyst Jens-Oliver Niklasch. “Economic output in Germany is treading water — at best.”
ING economist Carsten Brzeski warned that, while a summer …