In a surprise development, Germany’s economy sidestepped a recession in the third quarter, buoyed by government and household expenditure despite apprehension that there could be a second successive quarterly contraction in Europe’s leading economy. Preliminary information from the statistical bureau showed that the economy had swelled by 0.2% in the third quarter in comparison to the preceding one. This growth was against a Reuters analysts’ forecast of a 0.1% shrinkage in modified terms.
Earlier data for the second quarter was recalculated, showing a 0.3% reduction from the preceding quarter as opposed to the initially reported 0.1% decline. The federal labour agency revealed a larger than anticipated increase in unemployment in Germany for October. The agency stated that the count of unemployed people rose by 27,000 to a cumulative of 2.86 million on adjustment for seasonal factors. This was contrary to the anticipated 15,000 rise prophesied by Reuters analysts. However, the adjusted employment rate remained steady at 6.1%.
The labour agency’s chief, Andrea Nahles, noted that the expected surge in job market activity during the autumn was largely absent this year.