German Economy Expands on Fastest Investment Growth in Two Years

A surge in investment propelled German economic growth to its fastest pace in two years in the first quarter as mild winter weather encouraged construction.

Building activity jumped 2.3 percent at the start of the year, driving up capital investment by 1.8 percent, the Federal Statistics Office in Wiesbaden said on Tuesday. Private consumption rose 0.4 percent. Gross domestic product increased a seasonally-adjusted 0.7 percent in the January-March period, in line with a May 13 estimate.

Record-low unemployment in Germany is underpinning consumer demand, while companies are benefiting from a cyclical recovery in the 19-nation euro area driven by European Central Bank stimulus. The Bundesbank has expressed confidence that the country’s economy can retain its underlying strength, even though expansion will slow somewhat this quarter.

Bloomberg

Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.