GERMANY'S GDP DECLINED

German GDP contracted by 0,5 percent as reported by Financial Times (link):

"Germany’s economy contracted less than feared in the second quarter but the underlying pace of activity has still dropped sharply... Gross domestic product in Europe’s largest economy declined by 0.5 per cent in the three months to June, the country’s statistical office reported on Thursday. A fall had been expected after a surprisingly robust first quarter – when GDP rose by 1.3 per cent, according to the latest revised figures. But leaks from Berlin had suggested the drop could be as large as 1 per cent... Still, the underlying slowdown highlighted the impact of soaring oil prices in curbing global demand for German exports and reducing consumer spending. The latest contraction was the first for almost four years, the statistical office said... Germany’s weak performance is expected to drag down eurozone GDP figures due later on Thursday and which are expected to show the first quarterly contraction in the 15-country region since the launch of the euro in 1999. Concerns about recession – two quarters of negative growth – are now widespread across the eurozone. Earlier this month, Jean-Claude Trichet, European Central Bank president, warned that the second and third quarters would be “particularly week” and this week, Lorenzo Bini Smaghi, an ECB executive board member, said the period of weakness could be “protracted”. However some analysts warned against excessive pessimism. “The German economy is not likely to fall into recession in the third quarter. We expect a small rise in GDP with a rebound in private spending after the sharp decline in oil price,” said Sylvain Broyer at Natixis in Frankfurt."