In its monthly report published on the 28th, the Deutsche Bundesbank indicated that the German economy likely grew modestly in the second quarter. It analyzed that manufacturing benefited from foreign demand and rising exports, while consumer spending remained stable as purchasing power was not significantly affected by surging energy prices. On the other hand, rising commodity prices, including crude oil, due to the situation in Iran are acting as headwinds, and a Reuters survey expects growth in the April-to-June quarter to be just 0.1 percent compared with the previous quarter. It said that if the Middle East situation does not worsen, the negative impact could ease in the third quarter, but temporary positive factors will fade and growth is expected to slow. It also forecast that inflation will accelerate further in the coming months due to higher energy costs, with indirect effects gradually emerging.