German growth slows at lesser rate than anticipated

German economic growth slowed less than expected in the second quarter as higher exports and strong state spending and private consumption compensated for weaker investment in construction and machinery, preliminary data showed on Friday.

The economy grew by 0.4 per cent on the quarter between April and June after it expanded by 0.7 per cent in the first three months of 2016, the Federal Statistics Office said.

That was double the consensus forecast in a Reuters’ poll for 0.2 per cent growth.

Unadjusted data showed the economy expanded by 3.1 per cent on the year in the second quarter, the strongest growth in five years and more than double the Reuters’ consensus forecast for 1.5 per cent growth.

- Reuters