FRANKFURT, Germany (AP) — The German economy shrank by 0.1 percent in the second quarter as global trade conflicts and troubles in the auto industry weighed on Europe's largest economy.

The state statistics agency Destatis said Wednesday that falling exports had weighed on output while demand from consumers and government spending at home had supported the economy.

Germany's economy is facing headwinds as its auto industry, a key employer and pillar of growth, faces challenges adjusting to tougher emissions standards in Europe and China. The industry has also suffered from the U.S.-China trade conflict that has added tariffs on cars made by German companies in the U.S and shipped to China, while uncertainty over the terms of Britain's planned exit from the EU has weighed on confidence.