GERMAN DATA: Deeper Q2 GDP Data Shows Higher Saving, Weak Productivity (2/2)

A deeper view into the German Q2 GDP data gives some further indications on underlying drivers and momentum of the German economy:

• Gross value added (GVA) by industry broadly affirms the prevailing narrative: weak industry (industrial production excl. construction -0.5% Q/Q vs -1.3% prior), v weak construction (-3.2% Q/Q vs +1.9%), and resilient services (this was not entirely clear ahead of the release as per suspended activity data releases; "information and communication" +0.6% vs +0.9% prior, finance and insurance +0.2% vs +0.5%, business services +0.9% vs -0.3%, "public, education, health services" +0.1% vs +0.5%). "Trade, transport, hospitality" sector rather weak (-0.6% vs 0.3%).
• Productivity was weak as to be expected after Q2 employment data (GDP per hour worked -0.4% Y/Y vs -0.3% prior).
• Consumer caution appeared firm again as per a rising savings ratio (10.8% vs 10.2% prior).
• Revisions are limited on overall growth (no revisions after the Q2'23 period, before that slight downwardly revisions every couple of quarters).