Germany's VDMA engineering association halved its output growth forecast for this year to 1%, citing unresolved trade conflicts and a slowing world economy.

"Disputes about tariffs and other trade restrictions are unsettling market participants and dampening the industry's sentiment", VDMA said.

VDMA also cited a slowing world economy as a risk. It said the positive impact of pro-business tax reforms in the US was petering out and growth in China is expected to soften.