Economy German economic growth slows more than expected in third quarter

German economic growth slows more than expected in third quarter

Construction workers are silhouetted while standing on scaffolding at the construction site of the new headquarters of the European Central Bank (ECB) during a guided media tour in Frankfurt.
Construction workers are silhouetted while standing on scaffolding at the construction site of the new headquarters of the European Central Bank (ECB) during a guided media tour in Frankfurt.

German economic growth slowed more than expected in the third quarter of 2016 as weaker exports put the brakes on overall activity in Europe’s largest economy, preliminary data showed on Tuesday.

The German economy grew by 0.2 percent on the quarter between July and September after it expanded by 0.4 percent in the three months to June, the Federal Statistics Office said.

That was lower than the consensus forecast in a Reuters poll for 0.3 percent growth.

“Growth was slowed down by foreign trade,” the Federal Statistics Office said, adding exports fell slightly on the quarter while imports rose marginally.

“Positive impulses on the quarter came mainly from domestic demand. Both household and state spending managed to increase further,” the office said.

Unadjusted data showed the economy expanded by 1.5 percent on the year in the third quarter, also missing the Reuters consensus forecast for 1.8 percent growth.

On a working day adjusted basis, the annual GDP growth rate was 1.7 percent.