Germany’s economy shrank more sharply than first reported in the second quarter, with the Federal Statistical Office revising gross domestic product to a 0.3% contraction from an initial 0.1% decline. On a seasonally adjusted basis, output was 0.2% higher than a year earlier, half the pace economists expected, while the non-seasonally adjusted measure slipped 0.2% year-on-year. The downgrade was driven by weaker manufacturing and investment. Capital formation fell 1.4% from the previous quarter, reversing a 0.9% rise in the first quarter, and exports edged 0.1% lower. Household spending was revised down to a 0.1% gain, missing the 0.2% consensus, partly offset by a 0.8% jump in government expenditure. The data extend a prolonged industrial downturn: overall factory output is about 10% below its level two years ago, and production in energy-intensive sectors has dropped roughly 20% over three years. The figures underscore the challenges facing Europe’s largest economy as it struggles to regain momentum.