The recession in Germany is definitely weakening. That is the conclusion of the German Ministry of Finance and the Deutsche Bundesbank, the country’s Central Bank. The Bundesbank says the economy shrank less in the second quarter of 2009 than it did in the first, when it contracted by 3.8 percent.

The improved forecasts have been prompted by a surprising increase in orders to, and production by, German manufacturing industry. The country’s building sector is also improving, thanks to government investment in infrastructure building projects.

Photo of German Central bank by pittigliani2005 (flickr)