Growth and confidence boosts German economy The German economy expanded in the third quarter by 0.3 percent. Domestic demand was the main growth driver rising 0.7 percent. Investment, which began the year sluggishly rose by 3.0 percent, propelled by a strong increase in construction. A robust labour market, moderate inflation and strong wage hikes have boosted household spending. The official figures come on the back of data released by the closely-watched Ifo survey. It shows confidence improved in November amid rising optimism about the economy. The index rose by almost two points from last month in the survey of 7,000 firms to reach its highest level for 18 months.