Production activity in Germany is weak and recent data indicate slowing growth in the services sector, according to the data of the German Ministry of Economy. This is yet another sign that Europe’s largest economy will face a general weak economic trend in the second quarter.

“Following the weak developments that emerged in the second quarter, the economic upturn may become more noticeable once the external environment has calmed down”, says the report released on Monday.

Significant risks, however, are the trade conflicts, the expected exit of Britain from the European Union and the geopolitical tension.

According to the Bundesbank, the economy will see a slight decline in the second quarter.

Investors also believe that the economic recession in Germany is inevitable, according to Sentix Capital Markets Survey, which was published last week. The index measuring current conditions and expectations for the largest European economy has fallen to its lowest level in almost three decades.

A similar measure of what is happening in the Eurozone has shrunk to its lowest level since 2014.

The moderation of tensions between the US and China at the G20 summit in Japan last month has failed to inspire hope for investors. Germany’s dependence on exports and the Chinese market means even greater uncertainty until the dispute is resolved.