This post was originally published on this site
Germany’s economy grew in the third quarter on the back of consumption, Germany’s Federal Statistical Office said Friday, confirming a preliminary estimate.
The quarter-on-quarter comparison shows that positive contributions in the quarter mainly came from household and government consumption, Destatis said. Household final consumption edged 0.4% higher on the quarter and government consumption rose 0.8%.
As previously reported, gross domestic product–the broadest measure of goods and services produced in an economy–increased an adjusted 0.1% from the previous quarter. GDP grew 0.5% on year in the third quarter on a calendar and price-adjusted basis, Destatis said, confirming the first estimate. In a year-on-year comparison, it was also consumption that supported the economy.
Before last week’s preliminary estimate, a number of economists had expected Germany’s economy to slip into a technical recession. Recent indicators sent mixed signals on growth, with improvements in manufacturing orders but weak data on industrial production.
Foreign trade was another driver of economic growth. Destatis on Friday said exports rose 1.0% in the quarter, while imports grew 0.1%.
Gross fixed capital formation went up 1.2% in the construction sector in comparison with the previous quarter, while decreasing in machinery and equipment 2.6%.
German GDP declined 0.2% in the second quarter, after having grown 0.5% in the first quarter.