German GDP revised lower for second quarter

(Sharecast News) - Germany's economy contracted more than previously thought in the second quarter, according to data out on Friday from Destatis, with industrial production weaker than estimated. Gross domestic product declined by 0.3% over the April to June period, lower than the 0.1% decline originally reported three weeks ago, the Federal Statistical Office said.

This was tied for the steepest contraction in GDP over the past two years, and will have come as a surprise to analysts who had expected no revision from the preliminary figures.

The decline follows 0.3% economic growth in the first quarter and a 0.2% expansion in the fourth quarter of 2024.

The year-on-year change in GDP slowed to just 0.2%, down from 0.3% in the first quarter and below the initial estimate of 0.4%.

"Based on the new data available, in June 2025 output in manufacturing and in the construction industry, in particular, was worse than expected," Destatis said, adding that household spending was also worse than originally estimated.