Germany Posts Budget Surplus, but GDP Growth Slows

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By Trey Thoelcke Published
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German gross domestic product (GDP) rose 0.3% in the second quarter of 2012, following a 0.5% increase in the previous quarter, according to data from the Federal Statistics Office. This result was in line with analysts expectations.

Compared with the previous year, German GDP increased 0.5% in the second quarter, after growing 1.7% in the first quarter.

The nation’s economic expansion in the quarter was driven by exports and household spending, the data shows,  which offset the drop in capital demand and construction spending. Exports rose 2.5% from the first quarter and private consumption increased 0.4%.

The Federal Statistics Office also said German the budget balance posted a surplus of 8.3 billion euros ($10.4 billion), worth 0.6% of GDP, in the first half of the year. This was the first time since the first half of 2008 that the nation’s public finances have been in the black.

Meanwhile, the Markit preliminary composite purchasing managers’ index (PMI) for Germany indicated that private sector output fell at faster rate during August, as a renewed contraction in services offset slower drop in manufacturing activity. The 47.0 reading, down from 47.5 in July, signaled the steepest rate of private sector output contraction since June 2009.

Earlier this week he Bundesbank warned that growth may slow further in the second half due to prevailing uncertainty.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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