THE German economy picked up more steam than expected in the second quarter, driven by higher household and state spending, suggesting that Europe’s biggest economy is powering ahead despite trade-related business uncertainties.

Gross domestic product expanded by 0.5 percent quarter on quarter, the Federal Statistics Office said Tuesday.

The office also revised up the quarterly growth rate for the first three months of the year to 0.4 percent from 0.3 percent.

“Despite all of the prophecies of doom, the upswing is not only alive, it’s also kicking,” Bankhaus Lampe economist Alexander Krueger said. “For the time being, the upswing is unlikely to be stalled by the global trade dispute or overheating.”

But the conflict with the United States over tariffs is clouding the outlook for the second half, Krueger said.

On the year, the German economy grew 2 percent from April to June, calendar-adjusted data showed.

The statistics office said economic growth was mainly driven by higher household spending and increased state consumption. Additional impetus came from investments.

Exports also grew but were outperformed by even stronger imports growth, suggesting that net trade did not contribute to overall economic growth, the office said.

The figures underpin a gradual shift in the German economy away from its traditionally export-oriented growth model toward a more domestically driven upturn propelled by record-high employment, rising wages and booming construction. (SD-Agencies)