German GDP Performance Could Prompt Forecast Upgrades -- Market Talk

1004 GMT - The German economy weathered the war-prompted energy-price shock remarkably well in the second quarter, says Philipp Scheuermeyer, economist at KfW Research. GDP rose 0.2%, with first-quarter GDP revised up to 0.4%. "We can now expect a number of upward revisions to economic forecasts," Scheuermeyer says. Data shows surprisingly strong exports, with manufacturing orders pointing upward again, and business sentiment improving significantly in July. Private consumption also remained stable, despite the loss in purchasing power. However, the crisis isn't yet over given that the Strait of Hormuz remains blocked, he says. The current heatwaves could also restrict industrial production somewhat this summer due to supply bottlenecks, he adds. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

July 30, 2026 06:04 ET (10:04 GMT)