Bundesbank sees German growth slowing in the third quarter before a fourth-quarter pickup

Germany's economy is likely to grow only slightly in the third quarter before picking up in the fourth, according to the Bundesbank's September monthly report.

The central bank said low Rhine water levels have disrupted transport, while exports are contributing less to growth and high energy costs are weighing on household spending. It described those restraints as largely temporary.

Inflation remains high. Germany's harmonised rate was 2.9 percent in August, with the core rate at 2.6 percent. The Bundesbank said pharmacy and health reforms could together add just under half a percentage point in the first half of 2027.

Registered unemployment was 2.996 million in August after seasonal adjustment, up 3,000 from July. The unemployment rate held at 6.4 percent.