Germany, France return to growth
A 3.2% gain in German exports offset a 0.6% drop in consumer spending, helping the economy expand 0.2% from the previous quarter.
France grew twice as fast, as a 0.4% increase in consumer spending added to a 1.1% gain in exports. Germany’s reliance on exports, equivalent to a third of gross domestic product, raises concern about the growth outlook after the euro rose to a record high this week, making European goods more expensive for customers abroad and eroding US revenue for exporters. “The most worrying aspect of these reports is that, because the recovery has been export-led, it could be snuffed out by the strength of the euro,” said Martin Essex, an economist at Capital Economics Ltd. in London.
