Economics

German Economic Activity Unexpectedly Shrinks on Inflation

PMI slumps to 48, more than expected and lowest in 25 months
French economy is headed for stagnation, survey shows

Pedestrians pass customers at a beerhaus terrace at Marienplatz square in Munich, Germany.Photographer: Krisztian Bocsi/Bloomberg

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By Alexander Weber

July 22, 2022 at 7:30 AM UTC

Updated on

July 22, 2022 at 7:41 AM UTC

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Germany’s economy is shrinking for the first time this year as inflation squeezes businesses and households and the war in Ukraine destroys confidence.