[Capital Economics: German Economy May Have Weathered the Impact of the Iran Conflict] July 7 news, Capital Economics economist Andrew Kenningham stated that following last week's strong retail data, today's industrial data also showed improvement, indicating that Germany seems to have weathered the impact of the Iran conflict. Industrial output in May rose by 0.9% month-on-month, and this data collectively suggests that the German economy may have achieved expansion in the second quarter. However, Kenningham pointed out that the growth in industrial output was mainly driven by automobile production, and given the challenges faced by the sector, this momentum is unlikely to be sustained. He remarked: 'Although German manufacturing does not appear to have been significantly affected by the Iran conflict, this does not change the fact that, in the medium term, its share in the economy may gradually decline.'