BERLIN, Nov 14 — The German economy escaped a recession in the third quarter as strong consumer spending helped output grow 0.1 per cent quarter-on-quarter, defying expectations of a contraction, preliminary data showed today.
On the year, gross domestic product in Europe’s largest economy expanded by 0.5 per cent from July through September after a 0.3 per cent expansion from April through June, seasonally adjusted figures from the Federal Statistics Office showed.
Private household spending was higher than in the second quarter and the state also increased spending, the statistics office said, adding that construction also supported growth.
“We do not have a technical recession, but the growth numbers are still too weak,” Economy Minister Peter Altmaier told ARD public television.
While exports edged up, imports remained at about the level of the previous quarter, the office said, suggesting that net trade had a positive impact on the economy.
The Statitics Office revised down the quarterly GDP rate for the second quarter to a 0.2 per cent quarter-on-quarter contraction from a previously reported 0.1 per cent decline.
Analysts polled by Reuters for the third quarter had expected a 0.1 per cent contraction quarter-on-quarter and a 0.5 per cent expansion year-on-year in seasonally adjusted terms. — Reuters
