Capital Economics: The German economy may have weathered the shock from the Iran conflict, but the car-driven recovery is unlikely to be sustained

```htmlGolden Ten Data reported on July 7 that economist Andrew Kenningham from Capital Economics stated that after strong retail data last week, today's industrial data has also improved, indicating that Germany seems to have weathered the impact of the Iran conflict. Industrial output in May rose by 0.9% month-on-month, and together these figures suggest that the German economy may achieve expansion in the second quarter. However, Kenningham pointed out that the growth in industrial output was mainly driven by car production, and considering the challenges faced by this sector, this momentum may not be sustainable. He said: "Although German manufacturing seems largely unaffected by the Iran conflict, this does not change the fact that, in the medium term, its share in the economy is likely to gradually decline."```