Europe’s Economic Engine is Sputtering

Germany’s economy is Europe’s largest and it’s losing momentum.

Here’s an Oct. 29 Marketwatch headline:

German Economy Grew at Slower-Than-Expected Pace in 3Q

Elliott Wave International’s November Global Market Perspective showed this chart and said:

European new car sales fell to 718,598 last month, a 23% month-over-month decline and the lowest level for September since 1995. More important, strong declines were felt in all four of Europe’s biggest car markets: France, Germany, Italy and Spain. Moreover, the German housing boom suddenly hit a wall this autumn. The Europace Real Estate Index fell 0.2% in September, recording its second consecutive monthly decline and dropping the most since April 2020. In fact, Germany’s entire economic expansion appears to be faltering. According to the country’s five leading research institutes, the consensus GDP forecast now calls for 2.4% growth in 2021, down from a forecast of 3.7% this past April.