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Consumer spending, investment drove German growth in Q1: data
[FRANKFURT] The German economy, Europe's biggest, grew at its fastest rate in two years in the first three months of 2016, driven primarily by rising investment and household spending, data showed on Tuesday.
German gross domestic product (GDP) expanded by 0.7 per cent in seasonally and calendar-adjusted terms in the period from January to March, the federal statistics office Destatis said in a statement, confirming a preliminary estimate released two weeks ago.
That was faster than the growth of 0.3 per cent notched up in the preceding quarter, the statisticians said.
"Positive impulses came primarily from domestic demand," they said.
Investment, in particular, increased by 2.3 per cent, with investment in equipment rising by 1.9 per cent and construction investment up 2.3 per cent on account of the mild weather.
Private consumer spending increased by 0.4 per cent and public spending rose by 0.5 per cent.
Exports grew by 1.0 per cent in the three-month period, but because imports rose even more strongly, by 1.4 per cent, foreign trade overall trimmed 0.1 per cent off the headline growth rate, Destatis said.