BERLIN (Reuters) - Germany’s economic upswing remains intact despite weaker growth in the first quarter, the economy ministry said on Tuesday, pointing to several special factors such as a flu epidemic, strikes and an unusually high number of holidays in March.
“Private consumption remains strong. Companies are upbeat on their trade prospects in the light of overall favourable conditions,” the ministry said in its monthly report.
The unusually long period of coalition building also led to less state spending in the first quarter which slowed economic growth, the ministry added.
However, it was still unclear whether uncertainty about future U.S. trade policies had already contributed to weaker trade which was also a drag on overall GDP growth in the first three months of the year, it said.
Reporting by Michael Nienaber; Editing by Madeline Chambers