Bundesbank Sees German Economy Still in "Strong Upswing"

By Christian Vits

     FRANKFURT (MNI) - Germany's economic growth in the third quarter could

match the rate of expansion achieved in the first half of the year, the

Bundesbank said Monday.

     "The German economy still is in a strong upswing," the bank said in its

monthly bulletin. "In the third quarter, it could have held its high pace of

expansion experienced in the first half of the year."

     German gross domestic product increased 0.7 percent in the first and 0.6

percent in the second quarter, compared with the respective previous three-month

periods.

     Germany's industry was the main pillar of growth, the Bundesbank added. 

     "The order situation of industrial companies is excellent," the report

said. 

     The sentiment of the manufacturing sector is also excellent, according to

the bulletin.

     Construction won't contribute to the overall expansion, the Bundesbank

added. 

     The sector will, however, likely maintain its high output level. 

     Private consumption might come in somewhat subdued in the third quarter but

due to the "very good" sentiment among consumers and against the background of

"very favourable" developments on the labour market, consumption won't cause any

worries, the bank said.

--MNI Frankfurt Bureau; +49 69 97782671; email: christian.vits@marketnews.com

[TOPICS: M$E$$$]