Germany’s Q4 Growth Expected to Accelerate

Bundesbank President Joachim Nagel said Germany’s economic recovery is stronger than expected and growth is likely to accelerate in the fourth quarter, aided by increased government spending and a rebound in manufacturing, particularly chemicals and electrical equipment. The recovery remains uneven: household consumption is subdued, and investment in machinery and equipment fell in the second quarter. Nagel said Germany’s longer-term growth potential remains weak and called for labor-market reforms, a transition to carbon-neutral energy, and stronger private investment. October inflation was confirmed at 2.8%, down from 3.3% in September.