German growth slower than expected in third quarter: data

[FRANKFURT] Germany's economy grew slower than expected in the third quarter due to falling exports, official data said Tuesday.

Gross domestic product grew by 0.2 per cent compared with the second quarter, adjusting for price, seasonal and calendar effects, the federal statistics office Destatis said in provisional figures.

Analysts surveyed by Factset had forecast growth of 0.3 per cent between July and September, after Europe's largest economy expanded by 0.4 per cent in the second quarter and 0.7 per cent in the first.

Most of the growth was driven by domestic consumption, the statisticians said, with rises in both household and public spending.

Meanwhile, exports - long the motor of the German economy - slowed slightly compared with April to June, alongside a small increase in imports.

But, with a positive purchasing managers' survey - an indicator of future activity - in October and business confidence at a two-year-high, many observers predict an economic rebound in the fourth quarter.

The Bundesbank, Germany's central bank, expects the economy to grow by 1.7 per cent over the full year, while the federal government projects a slightly more optimistic 1.8 per cent.

AFP