Germany's economy strengthened further in the first quarter

Germany’s economy may have accelerated in the first quarter of the year, thanks to robust domestic demand, the country’s monetary authority said.

However, a slowdown might be on the cards in the second quarter of 2016 as factory orders slide and company executives grow more pessimistic, it added.

In its monthly report for March, the Bundesbank said “the German economy probably grew strongly in the first quarter [and might perhaps] even come in considerably above the growth rates of the previous quarters."

Strong domestic demand, especially from households, together with a buoyant construction sector, in the first three months of the year helped to compensate for weak foreign demand as China and other leading economies slowed down.

"For the second quarter, indications show a loss of speed."