German Economy Looks Closer to Recession Than Recovery -- Market Talk

Dow Jones06-10

0940 GMT - The economic outlook for Germany points more toward another recession than an imminent recovery, Ralph Solveen at Commerzbank says in a note. The manufacturing sector has shown a few positive signals, with operations proving resilient to Iran war disruptions. Still, sentiment remains on shaky ground, as it does in the services sector, Solveen says. Meanwhile a rebound in the construction sector appears to be running out of steam, dragged by a fall in new orders. Sentiment in the retail sector also looks rather gloomy among both businesses and consumers, with sales on a downward trend. "The war in Iran and the resulting sharp rise in energy prices are weighing on sentiment among businesses and households," Solveen says. (don.forbes@wsj.com)

(END) Dow Jones Newswires

June 10, 2026 05:41 ET (09:41 GMT)

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Sentiment in the retail sector also looks rather gloomy among both businesses and consumers, with sales on a downward trend. \"The war in Iran and the resulting sharp rise in energy prices are weighing on sentiment among businesses and households,\" Solveen says. 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