Economic Buzz: German GDP Expands In Q1

Germanys gross domestic product advanced 0.4 percent sequentially in the first quarter, after staying flat in the fourth quarter and contracting 0.2 percent in the third quarter of 2018, preliminary data from Destatis showed Wednesday. In the same period, economic growth in the euro area doubled to 0.4 percent from 0.2 percent in the fourth quarter, preliminary estimates showed. Destatis said positive contributions to Germanys GDP came from domestic demand. Fixed capital formation in construction, and in machinery and equipment, increased considerably. Household final consumption expenditure also increased substantially on the previous quarter. Meanwhile, government spending logged a decline. There were mixed signals regarding foreign trade as both exports and imports increased compared with the previous quarter. On a yearly basis, GDP climbed a working-day adjusted 0.7 percent, which was slightly faster than the 0.6 percent expansion seen in the fourth quarter and in line with expectations. However, on an unadjusted basis, economic growth eased to 0.6 percent from 0.9 percent a quarter ago.