BERLIN, May 28 (Reuters) - Germany’s DIHK Chambers of Industry and Commerce on Tuesday cut its 2019 growth forecast for the German economy to 0.6% from 0.9%, pointing to a worsened business sentiment in manufacturing due to weaker foreign demand for industrial goods.
DIHK President Eric Schweitzer said that the chambers’ latest business survey among more than 25,000 German companies showed that expectations for foreign business hit the lowest level in 10 years. “That’s an alarm signal,” Schweitzer said.
DIHK said domestic demand remained resilient, adding that business sentiment in retailing and construction was very good.
“Both sectors are currently driving economic growth,” Schweitzer said. But he cautioned that the domestic economy won’t be able to decouple itself from the difficult trade environment in the long run. (Reporting by Michael Nienaber, editing by Riham Alkousaa)