US trade policies, Italy's government cloud outlook for German economy

Germany's economic upswing is losing some momentum and the outlook for growth is clouded by a trade dispute with the United States as well as risks linked to Italy's new coalition government, the economy ministry said on Wednesday.

The ministry added in its monthly report that private consumption and exports - two main growth drivers for Europe's largest economy - remained bullish.

"The foreign and trade policies of the United States as well as the formation of a government in Italy have increased uncertainty and risks for growth," it said. "This is expressing itself in the real economy through a wait-and-see approach, especially when it comes to investments."