The German economy faced a slight contraction in the third quarter, as outlined by Bundesbank's recent October report. A combination of factors played a role in this dip:

A soft demand for industrial products on the international stage.Escalating financing costs impacted investments, slowing domestic demand, especially within the construction and industry sectors.

However, not all news is bleak. A robust job market and significant wage increases are working against the inflationary pressures. Despite the extra disposable income, the private households haven't substantially ramped up their consumption, as evidenced by weak real revenues in the retail and hospitality sectors. Furthermore, GfK surveys indicate a strong propensity to save among German households.

Even the services sector felt the slowdown, as surveys from the Ifo Institute and S&P Global's Purchasing Managers suggest.

As the business community waits with bated breath, Destatis is set to release its first GDP estimate for Q3 on October 30th. A snapshot of earlier quarters - Q2 saw a stagnant GDP, while Q1 experienced a 0.1% drop