By Maria Martinez 
 

The German economy posted a record expansion in output in the third quarter, even larger than reported in the first release, the German statistics office Destatis said Tuesday.

The country's gross domestic product grew 8.5% compared with the previous quarter, according to Destatis. This is above the preliminary estimate of 8.2% growth. Economists polled by The Wall Street Journal forecast an 8.2% expansion.

GDP fell 4.0% on year in the third quarter on a calendar and price-adjusted basis, Destatis said. This compares with a 4.3% contraction in the preliminary estimate. Economists polled by The Wall Street Journal had forecast a 4.3% contraction.

Household consumption, which increased by 10.8% on the previous quarter, was a significant contributor to growth in the third quarter. Government expenditure rose 0.8% in the third quarter, after a 2.2% increase in the second quarter, stabilizing economic growth during the first three quarters of the year.

Fixed capital formation in machinery and equipment was up 16.0%. However, fixed capital in construction declined 2.0% on the previous quarter, Destatis says.

An increase was also recorded in trade with foreign countries, the statistics office says. In the third quarter exports of goods and services were up 18.1% compared with the second quarter and imports also rose 9.1%.

Write to Maria Martinez at maria.martinez@wsj.com

(END) Dow Jones Newswires

November 24, 2020 02:34 ET (07:34 GMT)