German economy stagnated in second quarter, revised data shows

27th Aug 2024 07:17

(Sharecast News) - Economic activity in Germany held steady in the second quarter, according to upwardly revised gross domestic product estimates released on Tuesday.

The final reading of second-quarter German GDP was changed to show no growth compared with last year on a price and calendar adjusted basis, according to figures from Destatis.

This was up from the previous estimate of a 0.1% contraction released last month, and the first time in three quarters that the year-on-year change in GDP pulled out of negative territory.

However, compared with the first quarter, the economy still contracted by 0.1%, in line with initial estimates, following a 0.2% expansion in the first three months of the year.

"After the slight increase in the previous quarter, the German economy slowed down again in spring," said Ruth Brand, president of the Federal Statistical Office.

Final consumption expenditure held steady over the three-month period, rising by just 0.1%, as a 0.2% fall in household spending was offset by a 1% increase in government expenditure.

However, gross fixed capital formation - otherwise know as investments in fixed assets - fell sharply, dropping by 4.1% for machinery and equipment and by 2% for construction.

"No positive contributions came from foreign trade either," Destatis said, with total exports of goods and services falling 0.2% from the first quarter and imports stagnating.