The manufacturing recession in Germany is carrying over to this year and the outlook isn’t that bright still. The German economy ministry warns that there is no material rebound in economic conditions to start the new year and says that the German industry remains in a troubling spot.
With prices also remaining fairly stubborn, the worry here is that the burden will fall on households more than it already has in the months ahead. In the case of the euro area, it’s also making it tough on the ECB with Germany still being the biggest chunk of the economic pie.