{"id":39021,"date":"2023-10-31T09:23:56","date_gmt":"2023-10-31T09:23:56","guid":{"rendered":"https:\/\/prosfunds.com\/business\/europes-biggest-economy-shrank-in-the-third-quarter-spelling-trouble-for-the-region\/"},"modified":"2023-10-31T09:23:57","modified_gmt":"2023-10-31T09:23:57","slug":"europes-biggest-economy-shrank-in-the-third-quarter-spelling-trouble-for-the-region","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=39021","title":{"rendered":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region"},"content":{"rendered":"
\n

\n Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy.\n <\/p>\n

\n Gross domestic product dropped 0.1% in the July-to-September period compared with the previous quarter, when it grew 0.1%, according to <\/strong>Germany\u2019s Federal Statistical Office (Destatis).\n <\/p>\n

\n A fall in consumer spending drove the decline. On the other hand, investment <\/strong>by companies into machinery and equipment made a positive contribution to GDP, Destatis said.\n <\/p>\n

\n The data bodes ill for the entire area that uses the euro <\/strong>because Germany is the largest of its 20 economies.\n <\/p>\n

\n \u201cGermany\u2019s economy is once again teetering on the brink of a technical recession,\u201d said Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics. A technical recession is defined as two consecutive quarters of declining output.\n <\/p>\n

\n The German economy has been flirting with recession for almost a year. GDP shrank in the final three months of 2022 before stagnating in the first quarter of this year, according to revised data from Destatis. (An initial estimate by the statistics office had shown <\/strong>two consecutive quarters of declining output.)\n <\/p>\n

\n Economists say the picture is unlikely to improve soon, as the country\u2019s vast manufacturing sector grapples with weak Chinese demand, <\/strong>high energy costs and painful interest rate hikes. Companies in the sector are shedding jobs at the fastest rate in three years, as new orders decline and confidence remains \u201cdeeply negative,\u201d according to survey data for October published last week.\n <\/p>\n

\n \u201cGermany\u2019s economy is now firmly stuck in the mud,\u201d Vistesen said, noting that it was doubtful the economy would recover in the fourth quarter. \u201cRisks are tilted to the downside for the start of 2024,\u201d he added.\n <\/p>\n

\n There was better news on inflation. <\/strong>Consumer prices rose 3% on average in October compared with a year ago, according to an initial estimate published by Destatis Monday. This marked a sharp slowdown from a rate of 4.3% in September.\n <\/p>\n

\n A <\/strong>drop in energy prices over the past year \u2014 from very high levels <\/strong>last fall \u2014 dampened this month\u2019s inflation reading, Destatis said.\n <\/p>\n

\n While Germany\u2019s economy may be particularly hard-hit, business activity in the rest of the euro area has also been lackluster and economists think a period of stagnation, or even a mild recession, is looming in the region.\n <\/p>\n

\n A recent survey of companies in the eurozone\u2019s manufacturing and services sectors signaled a steep decline in output in October. The outlook for demand for goods and services also worsened.\n <\/p>\n

\n Last week, the European Central Bank kept interest rates unchanged \u2014 breaking a spell of 10 consecutive rate hikes \u2014 following a sharp drop in eurozone <\/strong>inflation in September and more <\/strong>evidence of economic weakness. ECB President Christine Lagarde warned that risks to growth \u201cremain tilted to the downside\u201d and said the Israel-Hamas war meant a \u201cless predictable\u201d outlook for energy prices.\n <\/p>\n

\n Still, third-quarter GDP data in the euro area is a \u201cmixed bag so far,\u201d according to Bert Colijn, senior eurozone economist at Dutch bank ING. He pointed out <\/strong>that, while Germany and Austria contracted, Belgium and Spain grew strongly. \u201cThis makes it likely that\u00a0eurozone GDP did not contract in the third quarter\u00a0\u2014 but a small decline in the fourth quarter\u00a0is a realistic prospect,\u201d he wrote in a note. <\/strong>\n <\/p>\n

\n Euro area GDP data is due out Tuesday.\n <\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross domestic product dropped 0.1% in the July-to-September period compared with the previous quarter, when it grew 0.1%, according to Germany\u2019s Federal Statistical Office (Destatis). A fall in consumer spending drove the […]<\/p>\n","protected":false},"author":1,"featured_media":39022,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-39021","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\nEurope\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds<\/title>\n<meta name=\"description\" content=\"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=39021\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds\" \/>\n<meta property=\"og:description\" content=\"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross\" \/>\n<meta property=\"og:url\" content=\"https:\/\/prosfunds.com\/?p=39021\" \/>\n<meta property=\"og:site_name\" content=\"Prosfunds\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-31T09:23:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-31T09:23:57+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/10\/231030100049-germany-shopping-092823.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/prosfunds.com\/?p=39021#article\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/?p=39021\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\"},\"headline\":\"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region\",\"datePublished\":\"2023-10-31T09:23:56+00:00\",\"dateModified\":\"2023-10-31T09:23:57+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/prosfunds.com\/?p=39021\"},\"wordCount\":564,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/prosfunds.com\/?p=39021#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/prosfunds.com\/?p=39021\",\"url\":\"https:\/\/prosfunds.com\/?p=39021\",\"name\":\"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds\",\"isPartOf\":{\"@id\":\"https:\/\/prosfunds.com\/#website\"},\"datePublished\":\"2023-10-31T09:23:56+00:00\",\"dateModified\":\"2023-10-31T09:23:57+00:00\",\"description\":\"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross\",\"breadcrumb\":{\"@id\":\"https:\/\/prosfunds.com\/?p=39021#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/prosfunds.com\/?p=39021\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/prosfunds.com\/?p=39021#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/prosfunds.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/prosfunds.com\/#website\",\"url\":\"https:\/\/prosfunds.com\/\",\"name\":\"Funding Factories\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/prosfunds.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/prosfunds.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/prosfunds.com\/#organization\",\"name\":\"Funding Factories\",\"url\":\"https:\/\/prosfunds.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png\",\"width\":780,\"height\":140,\"caption\":\"Funding Factories\"},\"image\":{\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/prosfunds.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"contentUrl\":\"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/prosfunds.com\"],\"url\":\"https:\/\/prosfunds.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds","description":"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/prosfunds.com\/?p=39021","og_locale":"en_US","og_type":"article","og_title":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds","og_description":"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross","og_url":"https:\/\/prosfunds.com\/?p=39021","og_site_name":"Prosfunds","article_published_time":"2023-10-31T09:23:56+00:00","article_modified_time":"2023-10-31T09:23:57+00:00","og_image":[{"width":800,"height":450,"url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/10\/231030100049-germany-shopping-092823.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/prosfunds.com\/?p=39021#article","isPartOf":{"@id":"https:\/\/prosfunds.com\/?p=39021"},"author":{"name":"News Room","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6"},"headline":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region","datePublished":"2023-10-31T09:23:56+00:00","dateModified":"2023-10-31T09:23:57+00:00","mainEntityOfPage":{"@id":"https:\/\/prosfunds.com\/?p=39021"},"wordCount":564,"commentCount":0,"publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"articleSection":["Business"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/prosfunds.com\/?p=39021#respond"]}]},{"@type":"WebPage","@id":"https:\/\/prosfunds.com\/?p=39021","url":"https:\/\/prosfunds.com\/?p=39021","name":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region | Prosfunds","isPartOf":{"@id":"https:\/\/prosfunds.com\/#website"},"datePublished":"2023-10-31T09:23:56+00:00","dateModified":"2023-10-31T09:23:57+00:00","description":"Output in Germany fell slightly in the third quarter, official data showed Monday, increasing the risk of a recession in Europe\u2019s biggest economy. Gross","breadcrumb":{"@id":"https:\/\/prosfunds.com\/?p=39021#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/prosfunds.com\/?p=39021"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/prosfunds.com\/?p=39021#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/prosfunds.com\/"},{"@type":"ListItem","position":2,"name":"Europe\u2019s biggest economy shrank in the third quarter, spelling trouble for the region"}]},{"@type":"WebSite","@id":"https:\/\/prosfunds.com\/#website","url":"https:\/\/prosfunds.com\/","name":"Funding Factories","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/prosfunds.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/prosfunds.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/prosfunds.com\/#organization","name":"Funding Factories","url":"https:\/\/prosfunds.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/ff-dark-logo-1.png","width":780,"height":140,"caption":"Funding Factories"},"image":{"@id":"https:\/\/prosfunds.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/bab8f1b00ccebe43e39ff640793108e6","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/prosfunds.com\/#\/schema\/person\/image\/","url":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","contentUrl":"https:\/\/prosfunds.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1693518183-96x96.png","caption":"News Room"},"sameAs":["https:\/\/prosfunds.com"],"url":"https:\/\/prosfunds.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/39021","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39021"}],"version-history":[{"count":1,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/39021\/revisions"}],"predecessor-version":[{"id":39023,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/posts\/39021\/revisions\/39023"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=\/wp\/v2\/media\/39022"}],"wp:attachment":[{"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prosfunds.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}