Eurozone & Germany

Eurozone: The eurozone's GDP grew 0.4% in Q2, beating expectations and showing resilience despite the Iran war.

Germany: Germany's GDP grew 0.2% in Q2, benefiting some industrial sectors from Asian competitors' disruption.

Eurozone: The eurozone's business activity returned to growth in July, ending a four-month stagnation, with the Composite PMI rising to 51.9. This suggests a potential recovery after a 0.2% contraction in Q1 2026, though risks from inflation and Middle East conflict persist.

Germany: Germany, the eurozone's largest economy, returned to growth for the first time in four months, contributing to the overall eurozone recovery.

Eurozone: The eurozone is the primary subject of the retail sales data, which showed an unexpected monthly decline, indicating weak consumption and potentially slower economic growth.

Germany: Germany, the largest eurozone economy, saw a notable monthly decrease in retail sales, which could weigh on overall eurozone growth.

Eurozone: The Eurozone is experiencing inflation above the European Union — European Central Bank's target, driven by increased energy costs due to the Iran war, and is facing mediocre economic growth.

Germany: Germany's manufacturing sector has stalled due to the economic shock from the Iran war, contributing to broader European economic challenges.

Eurozone: Eurozone data on inflation and economic growth influenced the European Union — European Central Bank's policy stance.

Germany: Germany's draft budget for 2027 foresees increased borrowing, which could impact its fiscal policy and economic outlook.

Eurozone: The Eurozone economy experienced a sharp weakening in its private sector expansion in March, with overall demand falling for the first time in eight months, largely due to the Middle East war.

Eurozone: The Eurozone is included in the average deflator calculation for future economic projections.