Official data shows the German economy shrank by 0.3% in the second quarter compared with the previous three-month period
BERLIN — The German economy shrank by 0.3% in the second quarter compared with the previous three-month period, official data showed Friday, a significantly worse showing than was initially reported as tensions with the U.S. over tariffs simmered.
In a preliminary report at the end of July, the Federal Statistical Office said gross domestic product contracted by 0.1% in April-June compared with the first quarter for Europe’s biggest economy. That contributed to a lackluster showing for the 20-nation eurozone.
Full data showed output in manufacturing and the construction industry was worse than expected in June and household spending for the quarter also was revised downward, the office said Friday. The decline followed growth of 0.3% in the first quarter.
The German economy has shrunk for the past two years. Chancellor Friedrich Merz’s administration has made revitalizing it a top priority since taking office May 6.
It has launched a program to encourage investment and set up a 500 billion-euro ($582 billion) fund to pour money into Germany’s creaki