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Slowing spending hits German growth

German consumers - Slumped in Q4
German consumers - Slumped in Q4

Official figures show that German economic growth slowed to 0.3% in the fourth quarter of 2007, less than half the 0.7% in the previous three-month period.

The slowdown, which was forecast by analysts, was largely the result of slumping household consumption.

Growth was underpinned by exports, despite the euro's rise in value against other major currencies, and by stronger business investment, statistics agency Destatis said.

It confirmed that the biggest European economy had expanded by 2.5% over the course of 2007, following a 2.9% increase a year earlier.