Oil prices threat to German growth

The Bundesbank, Germany’s central bank, said growth in Europe’s largest economy may have peaked in the second quarter as job cuts and rising oil costs threaten to delay a recovery in consumer spending.

“It is not certain if the current speed of expansion can be maintained in the coming months,” the Frankfurt-based central bank said in its report for August. A further increase in oil prices could pose “serious risks” for the recovery.

Record oil prices may add another deterrent to consumer spending, which hasn’t risen in Germany since the first quarter of 2003. Unemployment of more than 10% has discouraged households from increasing purchases, leaving the country’s economic recovery dependent on exports.