German carmakers are increasing output to capitalize on a new government incentive to trade in old vehicles and to bolster inventory for export demand.
Household spending may decrease and hinder a recovery as unemployment continues to rise. Joblessness increased 8.3% in June and the Bundesbank expects it to increase to 10.5% next year.
- iShares MSCI Germany Index (EWG): down 8.4% year-to-date; up 5.5% in the last three months
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Max Chen contributed to this article.