BERLIN: The German economy expanded 0.2% in the three months to September, according to results from official statistics body Destatis, indicating that growth has slowed markedly so far this year. In contrast, the economy grew 0.4% and 0.7% in the second and first quarters respectively. Moreover, the 0.2% growth rate was slightly below expectations of a 0.3% expansion and the weakest in a year. However, business surveys suggest growth is picking up again.
Although no details were revealed, Destatis reported that the domestic market remained the mainstay of the German economy, with final consumption expenditure of both households and government continuing to increase and boost gross domestic product, while negative impulses came from trade.
The weakness in the GDP report had already been hinted at by business survey data, with the German PMI dropping to a 16-month low in September.
That said, the outlook for the fourth quarter looks positive, with business survey data such as the PMI and Ifo pointing to an acceleration in economic growth.
