Economics

German Factories, Stuck in a Slump, Hold Back Euro-Area Economy

  • Manufacturing in Europe’s biggest economy continues to shrink
  • ECB is counting on a euro-area pickup later in the year
Photographer: Krisztian Bocsi/Bloomberg
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German manufacturing remained in a slump at the start of the second quarter, casting a cloud over the euro-area economy as well as the European Central Bank’s hopes for a quick recovery.

Factory output in Europe’s largest economy contracted for a fourth month running in April, according to a survey on Thursday. Manufacturing in the euro area also shrank, while a broader gauge of economic activity in the region declined.