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Exports, investments drive German growth in third quarter

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Exports, investments drive German growth in third quarter

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BERLIN (Reuters) – Rebounding exports and rising business investments were the main drivers of growth for the German economy in the third quarter, detailed data showed on Thursday, confirming a preliminary reading of 0.8 percent expansion. The Federal Statistics Office said exports rose by 1.7 percent on the quarter and imports rose 0.9 percent, which resulted in net trade contributing half of the quarterly growth reading. Business investments in machinery and equipment were up by 1.5 percent, contributing 0.1 percent to growth. Household spending fell by 0.1 percent and state expenditure was flat. The figures highlight the resurgence of exports as a driver of growth in an economy that has been relying mainly on private consumption and state spending for a growth cycle also supported by a booming construction sector and low interest rates. The data showed investment in construction was down 0.4 percent, resulting in the sector making no contribution to growth in the third quarter – in a sign that a construction boom could be pettering out.

(Reporting by Joseph Nasr; Editing by Michael Nienaber)
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