By Nina Adam
FRANKFURT--German economic growth slowed in the third quarter, as expected, following a drop in exports and weaker investment in machinery and equipment, the country's Destatis statistics office said Thursday.
Gross domestic product in Europe's largest economy grew 0.2%, or an annualized rate of 0.8%, Destatis said, confirming a flash estimate from Nov. 15. It was the lowest expansion rate in a year and well below the U.S.'s annualized growth rate of 2.9%.
Destatis reported a 1.0% quarter-on-quarter rise in public-sector consumption, as the government tries to accommodate a record number of migrants. At the same time, household consumption increased 0.4%, supported by a buoyant labor market and rising wages.
While construction investment snapped back in the third quarter after a brief period of weakness, investment in plant and machinery continued to decline. It dropped 0.6% on the quarter, adding to a 2.3% slump in the three months through June. German exports also fell 0.4% on the quarter, as analysts warned that the risk of heightened protectionism under a Donald Trump presidency threatened to dent Germany's trade prospects.
Compared with the third quarter of 2015, German GDP was up 1.7%, taking account of calendar effects. The annual rate was also in line with forecasts.
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(END) Dow Jones Newswires
November 24, 2016 02:33 ET (07:33 GMT)
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