Bundesbank sees strong Q2 growth in Germany

AP News
Posted: Jul 22, 2013 6:05 AM

BERLIN (AP) — Germany's central bank says recent data indicate the country's economy — Europe's biggest — "expanded strongly" in the second quarter following a weak start to the year.

The Bundesbank said in its monthly report Monday that it believes industry and construction made significant contributions to growth in the April-June period. The economy grew by 0.1 percent in the first quarter, weighed down by a long winter that hit sectors such as construction and the financial crisis among the 17 European Union countries that use the euro.

The Bundesbank didn't give a specific prediction for second-quarter growth.

Economist Holger Schmieding at Berenberg Bank predicts growth of 0.8 percent from the previous quarter, saying Germany is benefiting from the easing in the eurozone crisis. Official data are due on Aug. 14.