Germany's economy shrank in the third quarter, fac

Aihuicha, October 30: German output shrank in the third quarter, increasing the risk that Europe's largest economy will fall into a second recession in more than a year. G.D.P. fell 0.1 percent from the previous three months, according to the Bureau of statistics, below economists' expectations of 0.2 percent as household spending fell. The data suggest that Germany is trying to recover from an energy fueled recession last winter, after another quarter of stagnation. Rising domestic and global interest rates have put enormous pressure on demand for industrial goods, which Germany relies more than other countries on to fuel growth. While the service sector has been doing well, the S&P business survey shows that growth in the service sector has also slowed. There are also cracks in the labor market.