German consumers, long berated internationally for not playing their part in supporting a global economic recovery, have increased spending at the fastest rate for more than two years, boosted by the government's car scrappage scheme.
Details of Germany's second quarter growth figures showed consumer spending in Europe's largest economy rose 0.7 per cent, extending a 0.6 per cent rise in the first period. That was the fastest quarterly rise since the last three months of 2006.
The data helped explain why Germany, along with France, escaped recession ahead of the US and UK. Overall gross domestic product in Germany's export-led economy was up 0.3 per cent in the second quarter, the federal statistics office confirmed.
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