German economic growth beats expectations

However, growth slowed from the previous quarter's 0.3% reading. On a non-seasonally adjusted basis, annual GDP growth accelerated to 1.3%, surpassing the 1.2% forecast and the previous 1.0% reading, indicating an improvement in annual economic growth.

Meanwhile, the seasonally adjusted number of unemployed people increased by 4,000, below expectations of 5,000 and the previous increase of 12,000. The unemployment rate remained unchanged at 6.4%, matching market forecasts. Stronger-than-expected growth and slower increases in unemployment could support Germany's economic outlook while influencing European Central Bank (ECB) monetary policy expectations.