FRANKFURT, May 22 (Reuters) - German’s relatively robust growth will continue throughout the spring, supported by strong demand for industrial goods, high construction activity and buoyant private consumption, the Bundesbank said on Monday.
Europe’s largest economy grew by 0.6 percent in the first quarter, faster than the United States and most European peers.
“The strong growth of the German economy will probably continue in the spring of 2017,” the German central bank said in its monthly report.
Demand for industrial products should come from abroad, the Bundesbank said, supported by an economic upturn in most parts of the world, with firms likely investing more in equipment and machinery.
“The construction sector is likely to continue to flourish, and the service sectors are likely to continue their expansion,” the central bank added.
All together, this should have a positive effect on household income and the labour market, leading to a strong rise in private consumption, which could remain an important cornerstone of the upturn. (Reporting by Andreas Framke; Editing by Balazs Koranyi)