German Rebound Driven by Domestic Demand as Trade Weighs

Spending by German consumers, businesses and the government sparked an economic recovery at the end of last year that’s expected to strengthen as the country invests heavily into infrastructure and defense.

Household consumption rose 0.5% in the fourth quarter, with public expenditures up 1.1%, the statistics office said Wednesday. Capital investment also increased sharply. Gross domestic product gained 0.3% from the previous three months, Destatis said, confirming an earlier estimate.