(Bloomberg) -- The German economy, Europe’s largest, grew faster than initially reported in the second quarter, bolstered by a surge in private consumption.

Output increased 1.6% in the three months through June, compared with an earlier estimate of 1.5%. 

Figures from the statistics office show household spending jumped 3.2%, and government spending rose 1.8% amid strong fiscal support. At the same time, companies boosted capital investments.

While the country’s services sector has roared back to life following the easing of pandemic curbs, manufacturers have faced unprecedented struggles with shortages of raw materials and other supply-chain bottlenecks. 

Rising infections pose an additional risk for the economy, even though government officials are trying to steer clear of another lockdown. The Bundesbank said Monday that the recovery this year may not be as strong as previously expected as the course of the coronavirus pandemic remains uncertain.

“The delta variant and a slowing vaccination dynamic could lead to stricter protection measures,” the institution said in its monthly report. Growth in 2021 could turn out “somewhat lower” than the 3.7% forecast in June, it said.

A purchasing manager’s index showed on Monday that private-sector activity in Europe’s largest economy slowed in August, with services taking over as main growth driver. 

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