InvestmentsMay 22 2015

German GDP growth of 0.3% in Q1

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German GDP growth of 0.3% in Q1

Germany has recorded final GDP growth of 0.3 per cent in the first quarter of 2015 down from the 0.7 per cent growth recorded at the end of 2014.

The figures confirmed by the Federal Statistical Office showed the growth was driven mainly by domestic demand as household expenditure increased 0.6 per cent compared with the previous quarter, while government expenditure rose 0.7 per cent.

Meanwhile the statement showed exports increased 0.8 per cent in the first three months of 2015 compared with the last quarter of 2014, but the increase in imports was 1.5 per cent resulting in an overall 0.2 percentage point drag on GDP growth.

The slower growth figures follow disappointing manufacturing data from Germany yesterday, where the Markit manufacturing purchasing managers’ index (PMI) hits a three-month low.

As a result European markets opened slightly lower with the German Dax index slipping 0.04 per cent as of 8.41am, while the French Cac 40 index dropped 0.1 per cent, although the FTSE 100 index bucked the early trading trend with an increase of 0.39 per cent.