A pullback in the euro zone's biggest economy.
It was expected in Germany's new data for Q2.
But still has shock value even so.
Point one per cent down quarter on quarter is a contraction - another negative quarter would put it into official recession.
Annual growth has eased back to just 0.4 per cent.
Exports are a drag as manufacturers continue to suffer a global slowdown, itself made worse by tariff conflicts.
Construction - previously one of the stronger performers - was also weaker.
Germany's influential BDI industry lobby is now calling on the government to ditch its cherished 'balanced budget' rule to boost spending.
German investors are pushing government bond yields to new record lows, as they pile into safe havens.
"The trade war is a head-on attack on world-wide economic growth. China is not growing as much any more and Europe with its Brexit and no deal plus snap elections in Italy make for a negative mood to invest."
Sure enough, China's announcements of new official data also sent a ripple through markets.
At 4.8 per cent in July, industrial output has slipped to its lowest growth rate since 2002.
Retail sales growth has pulled back - infrastructure and property investment are slowing.
Policymakers, say analysts, may have to step up stimulus programmes to keep the economy on target.
But: with growth near a three-decade low, it has been slow to respond to measures rolled out since last year.
A long trade war with the U.S. is proving costly to both China and, increasingly, the world.