German Economy Shrinks Less than Expected in Q3 as Consumers Pull Back
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German GDP fell 0.1% in Q3 2022, less than the expected 0.3% decline. The economy continues to be weighed down by weak consumer spending and higher interest rates.
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Household consumption declined in Q3 as high inflation eroded consumers' purchasing power.
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Capital investment made a positive contribution to GDP, but was not enough to prevent contraction.
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Q2 GDP was revised up slightly to 0.1% growth. Q1 was revised to stagnation, meaning Germany avoided technical recession.
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Inflation data for October will be closely watched. Forecast is for euro zone inflation to ease to 3.2% from 4.3% in September.