German GDP Posts 2nd Quarterly Advance; Rises to 0.7%
German 3rd Quarter GDP rose 0.7% from a revised 0.4% the month prior amid economists’ expectations of 0.8% as government stimulus programs fueled company spending. Meanwhile, the Federal Statistics Office in Wiesbaden reported growth was led by exports and investment in equipment and construction. On the other hand, private consumption declined to taper growth as Chancellor Angela Merkel’s government is spending 85 billion euros to pull Germany’s economy out of the worst recession since the Second World War. At the same time, Imports pushed higher to boost stock building. Taking a closer look at the data, GDP tumbled 4.7% from a year earlier on an adjusted day working basis, adding further weight to consumption. There was little reaction to the data as the euro slightly advanced 0.2%, with the German 10-year benchmark declining 1 basis point to 3.35%. Investors will continue to monitor economic data from Europe overnight with Euro-Zone GDP scheduled to be released at 10:00 GMT. with 3rd quarter expectations of half a percent.
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