The 0.3% increase in GDP was in line with economists’ expectations, and it should also be noted that the German economy grew by a more substantial 0.7% in the second quarter of 2013.
Germany is the strongest economy in the eurozone, and for this reason its growth rate is outperforming the region as a whole. Eurozone economic output increased by 0.1% in the three months up to September, while the market consensus was for an increase of 0.2%. GDP had risen by 0.3% in the second quarter of 2013. The record level of unemployment in the region is weighing on growth prospects, and the EU commission has previously warned it could stay in the 12% region for another two years.
Traders are sitting on their hands ahead of the statement from Janet Yellen at 3pm (London time). Ms Yellen will take over from as Federal Reserve chairwoman in the New Year, replacing Ben Bernanke, and her testimony in front of the Senate Banking Committee could give us an indication of what monetary policy stance she will take.