Sumary of German household spending drives weaker-than-expected Q3 growth:
- Article content BERLIN — German household spending was the sole driver of a weaker-than-expected economic expansion in the third quarter, more than offsetting a drop in company investments and state consumption over the summer months, detailed data showed on Thursday.
- Article content The data marked a slowdown in German growth from an upwardly revised expansion of 2% from April to June.
- A 6.2% jump in consumer spending in July-September from the prior three months contributed 3 percentage points to the overall growth rate in the third quarter.
- Restaurants, bars and the hotel industry in particular benefited,” VP Bank Group analyst Thomas Gitzel said.
- But Gitzel added that persistent supply bottlenecks in manufacturing were holding back overall growth, which could be seen in weaker investment activity by companies in machinery and buildings in the third quarter.
- Article content State spending also fell on the quarter, further pushing down the headline GDP figure.