The euro was down in early forex trading this morning (November 23rd) as Germany's gross domestic product (GDP) slowed to 0.2 per cent.
Data released by the Federal Statistics Office today confirmed the body's initial estimate that the figure would drop by 0.1 per cent during the three months to September 2012.
Despite holding up well during the eurozone crisis, Germany's economic situation has worsened as a negative outlook drives companies to hold off on investing.
Analysts have also forecast further contraction during the fourth quarter of 2012, but stated that the eurozone's largest economy will avoid falling into recession.
FSO breakdown figures also showed German exports increased in the third quarter, rising by 1.4 per cent, while government spending advanced by 0.4 per cent.
Holger Schmieding of Berenberg Bank told Reuters: "Businesses are investing less in machines and other equipment. The only explanation for that is a crisis of confidence – which means the German economy will lose more speed."
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