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GERMANY EMERGES FROM SPENDING SLUMP.

Europe Intelligence Wire

| February 01, 2004 | COPYRIGHT 2004 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Market - Europe)

During the third quarter of 2003, Germany pulled out of its second recession in two years and rising export sales should be enough to sustain the anemic growth pattern that has emerged since then

The recovery in internal demand will be weak through most of this year, with growth in capital expenditure outpacing that of household consumption. Even though interest rates will hold at record low levels through the first half of this year, weak consumer confidence will forestall a sustainable rebound in sales of household durables. Job-related concerns will put downward pressure on confidence this year, but the greatest negative impact will be found in the eastern region

So far, recovery in the industrial sector has primarily been limited to leading export companies like Siemens and BASF. As a ...

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