Weak investment and trade drive Q2 contraction in German economy

Mon Sep 1, 2014 2:17am EDT

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BERLIN, Sept 1 (Reuters) - Weak investment spending and slow
trade led the German economy to contract for the first time in
over a year in the second quarter, data showed on Monday.
    Germany's Federal Statistics Office confirmed an earlier
flash estimate showing a 0.2 percent contraction in
seasonally-adjusted gross domestic product (GDP) on the quarter
between April and June.
    Gross capital investment fell by 2.3 percent and
construction investment dropped by 4.2 percent, in part due to a
mild winter which boosted building activity in the first
quarter.
    Foreign trade, traditionally the driver of German economic
growth, subtracted 0.2 percentage points from growth while
private consumption and inventories made a positive
contribution.

 (Reporting by Michelle Martin; Editing by Noah Barkin)
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