EuropeanAug 14 2014

German economy contracts as France shows no growth

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The German economy contracted 0.2 per cent in the three months to end of June, according to its Federal Statistical Office, which warned the economy was “losing momentum”.

It stated that “extremely mild weather” led to high growth rates at the beginning of the year.

The country reported 0.7 per cent GDP growth in the first quarter of this year.

France’s second quarter figures showed no growth, as revealed by the National Institute of Statistics and Economic Studies.

It reported that GDP “held steady” in the three month period following a first quarter of zero growth.

The French economy saw a decrease in manufacturing output in the quarter “partly due to the high number of potential extra days off this quarter due to midweek public holidays”.