The Bundesbank released its monthly report on Monday. The central bank said that it expected the German economy to expand in the first quarter of 2016 at least as strong as in the second half of 2015, while the economic growth is expected to slow in the second quarter of 2016.

The German economy grew 0.3% in the third and fourth quarters of 2015.

The central bank said that industry and construction rose sharply in January. But the Bundesbank pointed to "a stagnation in the new orders received by industry and the further deterioration in business expectations according to the Ifo business climate index, which has, moreover, been accompanied by a marked decline in previously stable and expansionary output and export expectations".

Consumer sentiment remained very confident, according to the central bank.