for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

German economy to grow by 0.9 percent in 2019, outlook clouded: DIHK

Export cars are loaded on a RoRo ship of Italian Grimaldi Group at a terminal in the port of Hamburg, Germany August 1, 2018. REUTERS/Fabian Bimmer

BERLIN (Reuters) - Germany’s DIHK Chambers of Industry and Commerce on Thursday slashed its 2019 growth forecast for the German economy to 0.9 percent from 1.7 percent, pointing to growing headwinds from abroad for Europe’s biggest economy.

“Companies’ outlook is getting clouded. Business expectations have significantly deteriorated in all economic sectors,” DIHK said in its latest business survey.

“Global trade conflicts are slowing business development, especially in the industrial sector,” the DIHK said, adding that business morale in domestically driven sectors such as construction and services remained relatively high.

The DIHK’s survey of around 27,000 managers - the biggest of its kind in Germany - found that business morale worsened in terms of current conditions and outlook.

Asked about the biggest threat for future business, most companies pointed to a shortage of skilled labor.

Reporting by Michael Nienaber; Editing by Michelle Martin

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up