Germany’s GDP contracted -0.3% QoQ in Q2 2025 (revised down from -0.1% prelim) and was down -0.2% YoY (but +0.2% YoY calendar-adjusted), as weaker industrial production and construction offset modest consumption gains.

• Household consumption rose +0.1% QoQ and government consumption +0.8% QoQ, while gross fixed capital formation dropped -1.4% QoQ, led by machinery (-1.9%) and construction (-2.1%).

• Exports fell -0.1% QoQ, with goods down -0.6% and services up +1.4%; imports rose +1.6% QoQ, adding to the drag from net trade.

• Gross value added declined -0.2% QoQ, driven by construction (-3.7%) and manufacturing (-0.3%), while information & communication and business services both grew +0.5%.

• On a YoY basis, gross fixed capital formation fell -1.9%, exports dropped -2.4% (goods -3.6%), and imports rose +3.3%, while household consumption was up +1.2% and government consumption +2.1%.

• Employment was stable YoY (+0.0%), but hours worked declined -0.5%; labour productivity per hour worked rose +0.3%, though productivity per person fell -0.2%.