Positive contributions to the GDP growth came from domestic demand, in particular household consumption (0.2 percentage points), government spending (0.1 percentage points) and gross fixed capital formation (0.1 percentage points). In addition, changes in inventories added 0.4 percentage points to the GDP growth, while net exports contributed negatively (-0.4 percentage points).
Household consumption expanded by 0.3 percent in the second quarter (vs 0.5 percent in Q1) and government spending rose by 0.6 percent (vs -0.3 percent in Q1). Also, there was an increase in gross fixed capital formation (0.5 percent vs 1.4 percent in Q1), driven by investment in machinery and equipment (0.3 percent vs 2.3 percent), in construction (0.6 percent vs 1.6 percent) and in other fixed assets (0.3 percent vs -0.5 percent). Exports of goods and services went up by 0.7 percent in the three months to June (vs -0.3 percent in Q1), and imports climbed by 1.7 percent (vs -0.2 percent in Q1).
Year-on-year, the economy expanded a calendar-adjusted 2 percent in the second quarter, the least since the fourth quarter of 2016, following a 2.1 percent growth in the prior period. On a non-seasonally adjusted basis, the German economy grew by 2.3 percent in the second quarter, much faster than a 1.4 percent expansion in previous three-month period, boosted by fixed investment (3.4 percent vs 2.2 percent); household consumption (1 percent vs 1.6 percent); and public spending (1 percent vs 0.8 percent). In addition, net trade contributed positively as exports jumped 4.2 percent (vs 2.2 percent in Q1) and imports climbed 4.1 percent (vs 2.7 percent in Q1). Changes in inventories added 0.6 percentage points to the GDP growth.