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German Economy Expands on Fastest Investment Growth in Two Years

  • Private consumption rose 0.4%, construction gained 2.3%
  • Pace of growth is expected to slow as one-off factors fade

A surge in investment propelled German economic growth to its fastest pace in two years in the first quarter as mild winter weather encouraged construction.

Building activity jumped 2.3 percent at the start of the year, driving up capital investment by 1.8 percent, the Federal Statistics Office in Wiesbaden said on Tuesday. Private consumption rose 0.4 percent. Gross domestic product increased a seasonally-adjusted 0.7 percent in the January-March period, in line with a May 13 estimate.