Underpinned by household and government spending, the German economy expanded in the second quarter, beating the initial estimates, data released by Destatis showed on Thursday.
Gross domestic product grew 0.1 percent sequentially, in contrast to the flat growth estimated on July 29. This was followed by the 0.8 percent expansion in the first quarter.
“Despite difficult framework conditions in the global economy, the German economy held its ground in the first two quarters of 2022,” said Georg Thiel, President of the Federal Statistical Office.
Data showed that price-adjusted GDP advanced 1.8 percent annually in the second quarter, up from the flash estimate of 1.5 percent. However, this was weaker than the 3.9 percent growth posted in the first quarter.
GDP growth, on calendar-adjusted basis, eased to 1.7 percent from 3.6 percent a quarter ago. The annual rate was revised up from 1.4 percent. GDP was back to its pre-crisis level for the first time.
On the expenditure-side, household final consumption expenditure rose 0.8 percent on quarter and general government raised its final consumption expenditure by 2.3 percent.
While gross fixed capital formation in machinery and equipment grew 1.1 percent, gross fixed capital formation in construction showed a marked decline of 3.4 percent
Despite the interruptions in supply chains worldwide and the fall in exports to Russia, overall shipment of goods and services were up 0.3 percent. However, there was a larger quarter-on-quarter increase in imports of 1.6 percent.
Elsewhere, survey conducted by the ifo Institute showed that a bleak mood hangs over the German economy. The business climate index fell to 88.5 points in August from 88.7 points in July.
Companies were somewhat less satisfied with their current business, and the strong pessimism of their outlook for the coming months was virtually unchanged.
Source: Read Full Article