German MoF: Increased external risks fuel...>

GERMANY: German MoF: Increased external risks fuel German business uncertainty

(RTRS)

- The German economy is facing increased headwinds from abroad and this is

fuelling business uncertainty, the finance ministry said on Thursday, adding

that the so far robust labour market is showing first signs of cooling.

- Export-oriented manufacturers in Europe's largest economy are suffering from

weaker foreign demand, growing trade tensions and uncertainty over Brexit.

- "External risks have increased significantly and are fuelling business

uncertainty," the finance ministry said in its monthly report, adding that early

indicators pointed to a sustained slowdown in the industrial sector.

- Record-high employment, inflation-busting pay hikes and low borrowing costs

have supported Germany's domestic economy so far, with household spending and

construction providing a certain buffer against external shocks.

- "The labour market situation is still favourable, but employment growth is

slowing," the ministry cautioned. Forward-looking indicators were pointing to a

further slowdown in employment growth, especially in manufacturing.