Business World

Thursday 26 April 2018

German economy grew 0.6pc in second quarter

The euro sculpture in front of the European Central Bank headquarters in Frankfurt, Germany
The euro sculpture in front of the European Central Bank headquarters in Frankfurt, Germany

The German economy grew by less than expected in the second quarter as net trade dampened an overall expansion which was driven by strong household spending and rising state expenditure, the Federal Statistics Office said on Tuesday.

Seasonally and calender adjusted gross domestic product (GDP) in Europe's biggest economy rose by 0.6pc on the quarter, the data showed. This was slightly weaker than the consensus forecast of 0.7pc in a Reuters poll.

Read more: Pound remains under pressure amid deluge of economic data

But the growth rate for the first quarter was revised up to 0.7pc on the quarter from 0.6pc.

Unadjusted data showed the economy grew by 0.8pc on the year in the second quarter. This compared with a consensus forecast of 1.9pc. Adjusted for calendar affects, the yearly growth rate was 2.1pc in the April-June period.

Reuters

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