Bundesbank Says German Economy Still Weak Despite Recent Pickup

Germany’s economic rebound at the start of the year was largely due to one-off factors and the underlying trend remains weak, according to the Bundesbank.

Europe’s largest economy expanded 0.4% in the first quarter, after stagnating for most of the second half of 2018. Yet the German central bank pointed to fiscal measures that boosted private consumption, a bounceback in auto sales after production was constrained last year, and mild winter weather that boosted construction.