German GDP Growth Accelerates More Than Estimated

(RTTNews) - Germany's economy expanded more than initially estimated in the third quarter, despite weaker global growth, delivery bottlenecks and rising inflation, official data showed on Friday.

Gross domestic product grew 0.4 percent sequentially in the third quarter, faster than the 0.1 percent rise in the second quarter. The rate was revised up from 0.3 percent estimated on October 28.

The expenditure-side breakdown showed that the growth was driven by household spending and gross fixed capital formation in machinery and equipment.

Household spending rose 1.0 percent in the third quarter, while government final consumption expenditure remained unchanged.

Gross fixed capital formation in construction dropped 1.4 percent, whereas investment in machinery and equipment rose notably by 2.7 percent.

Exports of goods and services were up 2.0 percent. But the increase in imports of 2.4 percent was even higher than that of exports.

On an unadjusted basis, economic growth slowed to 1.2 percent from 1.7 percent in the second quarter. However, the rate was slightly faster than economists' forecast of 1.1 percent. Calendar-adjusted GDP grew 1.3 percent annually, following second quarter's 1.6 percent expansion. The calendar-adjusted growth was also faster than the initial estimate of 1.2 percent.

Elsewhere, survey results from the market research group GfK showed that German consumer confidence is set to rise moderately in December.

The forward-looking consumer confidence index rose to -40.2 from -41.9 in November. The reading was expected to improve to -39.6.

Consumers' long-standing fears of skyrocketing energy prices eased somewhat, which had a positive impact on consumer sentiment, Rolf Bürkl, GfK consumer expert said. Despite the improvement, the consumer climate situation remains tense. Gfk expects GDP to shrink around half a percent in the coming year. Private consumption is unlikely to make a positive contribution to growth next year, the market research group said.