German Economy Contracts Again in Q3 on Weaker Consumer Spending, Energy Costs
• German economy shrank 0.1% in Q3, reversing same level of growth in previous quarter • Drop driven by 0.3% decline in household spending, which accounts for 2/3 of GDP • Public spending rose 0.2%, first increase in over a year • High energy costs, weak orders, higher rates taking toll • Bundesbank projects economy will shrink again in Q4 but show slight improvement in early 2023