By Tom Fairless 
 

FRANKFURT--Germany's economic slowdown doesn't appear to be turning into a recession, the country's central bank said Monday, as temporary bottlenecks in the auto industry are subsiding and the labor market remains strong.

Germany's economy, Europe's largest, narrowly avoided a recession at the end of last year as a weak trade performance dragged on growth, the country's statistics office said last week.

In its monthly report, published Monday, the Bundesbank said economic growth probably remained soft early in 2019, reflecting weak confidence among companies that are navigating global uncertainties ranging from Brexit to international trade conflicts.

Still, "there are no signs that the slowdown is turning into a downturn," the Bundesbank said.

Auto production and exports are gradually recovering from temporary bottlenecks last year, and a strong labor market should help to support private consumption, the central bank said.

Write to Tom Fairless at tom.fairless@wsj.com

(END) Dow Jones Newswires

February 18, 2019 06:18 ET (11:18 GMT)