Germany's Chambers of Industry and Commerce (DIHK) slashed its 2019 growth forecast for the German economy to 0.9% from 1.7%, pointing to growing headwinds from abroad for Europe's biggest economy.

The DIHK's survey of around 27,000 managers - the biggest of its kind in Germany - found that business morale worsened in terms of current conditions and outlook. Asked about the biggest threat for future business, most companies pointed to a shortage of skilled labour.

“Companies' outlook is getting clouded. Business expectations have significantly deteriorated in all economic sectors. Global trade conflicts are slowing business development, especially in the industrial sector," the DIHK said.