The German economy picked up more steam than expected in the second quarter of the year, driven by higher household and state spending, preliminary data showed today.

Gross domestic product in Europe's biggest economy expanded by 0.5% quarter-on-quarter, the Federal Statistics Office said. That compares with a Reuters forecast of 0.4%.

The office also revised up the quarterly growth rate for the first three months of the year to 0.4% from 0.3% reported previously.

Compared with the same quarter in 2017, the economy grew by 2% from April to June, calendar-adjusted data showed.

Analysts polled by Reuters had expected 2.1%.