Germany Q3 preliminary GDP +0.2% vs +0.1% q/q expected

Prior +0.3%GDP Y/Y +1.2% vs 1.1% expectedPrior +1.0%Germany's economy expanded by 0.2% q/q in the third quarter of 2026, according to preliminary data from Destatis, extending the recovery seen in the first half of the year. GDP increased by 1.3% y/y in price-adjusted terms, or 1.2% when adjusted for both prices and calendar effects.However, the underlying details point to a loss of momentum, with the recovery becoming increasingly uneven. Consumer spending made a modest positive contribution, suggesting that domestic demand is holding up, but investment declined, highlighting continued weakness in business activity.Meanwhile, exports, which provided a significant boost to growth during the first half of the year, lost momentum in Q3. This is particularly relevant for Germany, given its heavy reliance on external demand and the importance of its manufacturing and export sectors.Overall, the report suggests that Germany's economic recovery is losing some steam. Growth is still positive, although the weaker performance of investment and exports raises questions about how sustainable the recovery will be heading into the final quarter of the year considering all the headwinds from tightening financial conditions and geopolitical shocks. This article was written by Giuseppe Dellamotta at investinglive.com.