Germany’s economy has contracted at a quarterly pace of 0.1% in the third quarter of the year, a preliminary figure showed on Monday, while reversing from a revised up 0.1% expansion in Q2.

A consensus of analyst estimates had pointed to a 0.3% GDP contraction.

In the latest quarterly period, downward pressure on GDP came from private consumer spending, since interest rates remained elevated at multi-year highs and CPI inflation remained well above the European Central Bank’s 2% target.

On the other hand, investments in equipment grew during the period, the Federal Statistical Office said.

In annual terms, German economy shrank 0.3% in Q3, while market consensus had pointed to a deeper contraction – 0.7%.

The Euro was last edging up 0.17% on the day against the US Dollar, with the EUR/USD currency pair trading at 1.0577. The major pair has pulled back from a 1-month high of 1.0694, which it registered on October 24th.

Against the Sterling, the single currency was gaining 0.22% on Monday, with the EUR/GBP pair trading at 0.8724, ahead of Bank of England’s policy decision due on November 2nd. The pair kept trading in proximity to the 5 1/2-month high of 0.8740, registered on October 20th.

Also on Monday’s economic calendar is Germany’s preliminary CPI inflation report for October. Consumer prices probably rose 0.2% month-over-month in October, according to market estimates, after a 0.3% gain in September.

And, annual CPI inflation in the Euro Area’s largest economy probably decelerated to 4% in October from 4.5% in September. The flash data will be released at 13:00 GMT.

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