The German and French economies unexpectedly grew in the second quarter as consumer and government spending rose, bringing an end to their worst recessions since World War II. Gross domestic product rose a seasonally adjusted 0.3 percent from the first quarter in both countries, their statistics offices in Wiesbaden and Paris said. Economists predicted contractions of 0.2 percent in Germany and 0.3 percent in France, Bloomberg News surveys showed. The euro climbed more than half a cent to $1.4271. The resumption of growth in the euro regionâs two largest economies makes it unlikely the European Central Bank will add to its stimulus measures. Global measures to revive growth have boosted demand for European exports, while government subsidies and lower interest rates are supporting spending at home. With unemployment rising, the recovery may be slow. ... Germanyâs second-quarter expansion was aided by increases in government and private consumption and construction, the statistics office said. Net trade also made a positive contribution as exports declined less than imports, it said. In the year, the economy shrank 5.9 percent when adjusted for the number of working days. http://www.bloomberg.com/apps/news?pid=20601068&sid=aNPbrnK78M64
I can't wait to see the EUR numbers numbers for Q1/Q2 2010! Right now they're piggypacking off global stimulus spending. What is going to help the German export machine once the demand for exports tapers off?
It will read like this : Hard times continue for German machine tools http://www.vdma.org/wps/portal/Home...WZM/Wirtschaft_und_Recht/Wzm_en_A_20090807_AE