Germany Just Slashed Its Growth Forecasts In Half

Despite some positive numbers on factory orders this morning, Europe's biggest economy looks to be slowing down at a pretty fast pace. The Bundesbank, Germany's central bank, just slashed its growth forecasts for the economy.

Growth in 2015 is expected to be just 1%, half of the 2% that was expected previously.

Here's the Bundesbank:

The German economy lost considerable momentum in the second and third quarters of 2014 and moved onto a flatter growth path. Following a brisk start to the year, which was partly fuelled by favourable weather conditions, real GDP did not grow any further in the second and third quarters after seasonal and working-day adjustment and thus failed to live up to the hopes of the June outlook.

The run-through is pretty grim. Underlying industrial output is described as "stagnant" and the bank notes that business investment hasn't really materialised, after getting a boost at the end of 2013.

In the last quarter, German GDP grew by only 0.1%, but the powerhouse economy's politicians and monetary policymakers are still pretty much staunchly against any extra stimulus.