2017.11.2322:56:00UTC+00Germany Economy Poised to Remain Strong Despite Political Uncertainty

Exports and rising business investments were the main drivers of growth for the German economy in the third quarter, according to latest data, which indicates a strong upswing that would extend well into 2018.

Detailed gross domestic product data showed that exports increased 1.7 percent on the quarter while imports were up 0.9 percent, which translated in net trade contributing half of the quarterly growth reading of 0.8 percent.

Business investments in machinery and equipment rose 1.5 percent, contributing 0.1 percentage points to expansion. Household spending dropped 0.1 percent and state expenditure was flat.

The data should alleviate jitters about risks for the German economy associated with Chancellor Angela Merkel's failure to form a coalition government after an election in September, which raised the possibility of a second vote that could boost the far-right.

Germany showed signs of sharp growth in foreign trade.

Markit's flash composite Purchasing Managers' Index for the whole economy increased from 56.6 to 57.6 in November, comfortably above consensus estimates of 56.7.

Manufacturers marked a significant rise in new orders, particularly from abroad. The manufacturing index increased from 60.6 to 62.5, compared to consensus expectations of a slight decline.

The solid demand led to the best rate of job creation in six-and-a-half years, despite the fact Germany already has record-low jobless rates.