FRANKFURT: The German economy unexpectedly shrank in the second quarter, preliminary data showed Tuesday, falling further behind as a recovery takes hold elsewhere across the eurozone.

Output in Europe’s biggest economy contracted by 0.1 percent compared with the previous three months, federal statistics office Destatis said, after expanding by 0.2 percent in the first quarter.

The second-quarter data surprised analysts surveyed by FactSet who had forecast a 0.1-percent increase.

The April-to-June period noticeably saw declining investment in equipment and construction, Destatis said.

“The German economy is stuck in crisis,” said Klaus Wohlrabe, head of surveys at Ifo economic institute, citing persistent weakness in manufacturing and sluggish private consumption.

“Hardly any improvement is to be expected in the third quarter of 2024 either,” he added.

Germany, traditionally a driver of European growth, was the only major advanced economy to shrink in 2023 as it battled high inflation, an industrial slowdown and cooling export demand.