Economics

Bundesbank Sees German Unemployment Rising on Economic Downturn

  • Rebound in exports, manufacturing isn’t yet in sight
  • Weaker demand for cars weighed down private consumption
Photographer: Alex Kraus/Bloomberg
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German unemployment is set to rise in the next three months after a slump in manufacturing and weak exports weighed down Europe’s largest economy, according to the Bundesbank.

Total output probably contracted in the second quarter, the Frankfurt-based institution said in its monthly report. While domestic demand likely continued to support growth, softer momentum is starting to leave its mark on the labor market.