Official figures show that German economic growth slowed by more than economists expected in the second quarter of this year, dragged back by a decline in construction investment which offset strong exports.
Gross domestic product (GDP) expanded 0.3% in the April-June period, the Federal Statistics Office said in a preliminary estimate. Economist had expected 0.4% growth, following the first quarter's 0.5%.
The expansion over the spring period was driven by 'very dynamic' foreign trade and there was some support from domestic demand, although to a lesser extent than in the first quarter, the office said in a statement.
'While equipment investment clearly increased, construction investment fell in the quarter,' it added.
Europe's largest economy grew at an annual rate of 2.5% in the second quarter, a slowdown from the 3.3% rate at the start of the year.
Meanwhile, the statistics office revised up the annual growth rate for 2006 to 2.9% from 2.8%.
Separate figures showed that the French economy expanded by 0.3% in the second quarter, compared with growth of 0.5% in the first quarter.
