According to the July issue of its Monthly Report, the Bundesbank believes the economic upturn in Germany is likely to have accelerated in the second quarter of 2015.  Bundesbank economists attribute this largely to the continuing strong levels of consumption and the significant upturn in exports.

According to the report, the robust consumption levels were driven by the good labour market situation and considerable wage and salary growth, which were also reflected by a rise in retail sales. According to Bundesbank experts, the sharp upturn in Germany's export sector also had a significant impact on the current growth situation.

Following sluggish orders in winter, industrial activity continued to expand at only a moderate rate in the first two months of the spring quarter, in the Bundesbank's estimation. However, as stated in the Monthly Report, the sharp increase in orders in April and May, mainly from abroad, is indicative of a pick-up in the coming months. According to Bundesbank economists, activity in the main construction sector in these two months matched the high level seen in winter, in which it benefited from the mild weather.

Additional main topics

In addition to outlining economic trends, the July issue of the Monthly Report also discusses the slowdown in growth in emerging market economies. Furthermore, the report presents selected results of a special survey carried out by the ifo Institute on behalf of the Bundesbank, which identified the corporate adjustment patterns in the German labour market during the 2008-09 recession.