The German economy grew a seasonally-adjusted 0.3 percent in the third quarter of 2015, slowing from a 0.4 percent expansion in the June quarter and matching preliminary estimates. A faster increase in household and government spending were unable to offset a further decline in investment and a downward effect of foreign trade.
Quarter-on-quarter, private consumption grew by 0.6 percent, as compared to a 0.1 percent growth in the preceding quarter. Public consumption rose 1.3 percent, accelerating from a 0.7 percent growth in the June quarter. Overall consumption contributed 0.6 percentage points to growth. Gross fixed capital formation contracted 0.3 percent, following a 0.4 percent drop in the previous three months. Investment in machinery and equipment fell the most by 0.8 (after a 0.5 percent rise in the previous quarter). Construction investment also shrank 0.3 percent (after a 1.3 percent contraction in the second quarter). In contrast, investment in other products grew by 0.6 percent, following a 0.7 percent growth in the June quarter.
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Exports rose 0.2 percent, slowing from a 1.8 percent increase in the previous quarter. Imports rose by 1.1 percent, accelerating from a 0.5 percent rise in the previous three months. That brought a downward effect of the GDP (-0.4 percentage points). Inventories were up, adding 0.2 percentage points to growth.
Year-on-year, the GDP expanded by 1.8 percent following a 1.6 percent expansion in the previous quarter. Household final consumption rose by 2.1 percent, up from a 1.8 percent growth in the previous quarter. Government consumption expanded 2.9 percent, accelerating from 2.1 percent growth in the June quarter. Gross fixed capital formation also grew by 2.2 percent (after a 1.9 percent expansion in the preceding quarter). Equipment investment grew the most by 4.2 percent, followed by other plants investments (+2.8 percent) and construction investment (+0.8 percent). Overall investment added 0.5 percent to growth. In contrast, the reduction in inventories slowed down the GDP growth by 0.2 percentage points. The balance of exports and imports also slashed 0.1 percentage points contribution to the year-on-year GDP growth.