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German Q3 GDP growth confirmed at 0.8%

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Staff Writer | November 23, 2017
The German economy expanded a seasonally-adjusted 0.8% on quarter in the September quarter of 2017, following a 0.6% growth in the previous period and matching the preliminary estimate.
German Q3 GDP growth confirmed
Europe   Government spending was flat in Germany
It marked the 13th straight quarter of growth, mainly supported by foreign trade and investment while household consumption and government spending were rather stable.

Positive contribution to GDP mainly came from net trade (0.4 percetage points) and fixed investment (0.1%age points).

Also, changed in inventories added 0.4%age points to growth Meantime, household consumption subtracted 0.1%age points from growth while government spending gave no contribution to growth.

Quarter-on-quarter, exports rose 1.7%, faster than a 1.0% in the June quarter while imports went up at a slower 0.9% (from 2.4%).

Gross fixed capital formation went up 0.4%, following a 1.5% in the June quarter, supported by investment in machinery and equipment (1.5% from 3.3%) and that in other products (0.6% from 0.9%). Meantime, construction investment cotracted by 0.4%, after a 0.5% rise in Q2

Private consumption declined by 0.1%, compared to a 0.9% increase in the preceding quarter.

Government spending was flat, after a 0.2% rise in Q2.

Year-on-year, the GDP advanced 2.8%, following an upwardly revised 2.3% growth in the previous three months. On a non-seasonally adjusted basis the economy grew by 2.3% year-on-year (from 1.0% in Q2), as private consumption (2.1% from 2.2%) and government spending (0.9% from 1.1%) increased further.

In addition, gross fixed capital formation went up at a faster 3.6% (from 2.1% in the June quarter), as investment growth accelerated for: machinery and equipment (4.6% from 1.5%) and construction (3.2% from 2.0%).

Meanwhile, investment in other products grew by 3.2% (from 3.4%). Net external demand contributed positively to the GDP, as exports went up 4.8% while imports advanced at a faster 5.5%.