Bundesbank Says Growth Probably Slowed in Third Quarter

The Bundesbank said that the German economy, Europe’s largest, probably expanded at a slower pace in the third quarter.

“It seems economic output in Germany increased in the summer quarter of 2013, albeit not to the same extent as in the second quarter,” the Frankfurt-based central bank said in its monthly report published today. Growth in the three months through June was partly due to “catch-up effects,” it said.

Gross domestic product expanded 0.7 percent in the second quarter after a stagnation in the first three months when an exceptionally cold winter damped output. German growth has helped the 17-nation euro area emerge from its longest-ever recession after six straight quarterly contractions.

Sentiment (GRIFPBUS) among companies as measured by the Ifo institute rose for a fifth month in September and ZEW investor confidence increased for a third month in October. At the same time, factory orders unexpectedly dropped in August and unemployment rose for a second month in September.

German gross domestic product probably increased 0.4 percent in the third quarter, according to Bloomberg’s monthly economic survey published Oct. 10. The economists see it climbing 0.5 percent in 2013 and 1.8 percent next year, ahead of the Bundesbank’s forecast of 0.3 percent and 1.5 percent, respectively.

The German Federal Statistics Office is due to publish preliminary GDP numbers for the third quarter on Nov. 14.

To contact the reporter on this story: Stefan Riecher in Frankfurt at sriecher@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

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