German economy shrank by 0.3% in Q2, more than initially expected

The German economy contracted by 0.3% in the second quarter of 2025 compared with the previous quarter, the statistics office said on Friday, revising its preliminary reading of a 0.1% contraction.

Industrial production, in particular, performed worse than initially assumed, the statistics office said.

Household consumption in the second quarter was revised downwards to a 0.1% increase due to new information available on the services sectors, such as the monthly statistics of accommodation and food services for June.

Government spending increased by 0.8% on the previous quarter, the statistics office said.

Investment decreased significantly in the second quarter, by 1.4%.

No positive contributions came from foreign trade either. In the second quarter, total exports of goods and services were down 0.1% from the first quarter.