Germany's economy grew more than previously thought in the third quarter despite high inflation and an energy crisis, revised official data showed on Friday.

Europe's biggest economy expanded by 0.4 per cent between July and September compared to the second quarter – slightly better than the 0.3 per cent growth previously calculated by federal statistics agency Destatis.

Analysts had forecast a contraction in the third quarter as the fallout from Russia's war in Ukraine takes a toll on European economies.

"Overall, the German economy remains robust," Destatis said in a statement.

Gross domestic product grew "despite difficult general conditions in the global economy such as the continuing COVID-19 pandemic, delivery bottlenecks, continuing price rises and the war in Ukraine," it said.

GDP grew "despite difficult general conditions in the global economy such as the continuing COVID-19 pandemic, delivery bottlenecks, continuing price rises and the war in Ukraine"- Destatis statement

A separate survey on Friday showed that German consumer confidence has edged up again following a long period of decline, the latest indication that concerns are easing about the severity of an approaching downturn.

Pollster GfK's forward-looking barometer registered -40.2 points for December, an increase of 1.7 points from November.

Germany was heavily reliant on Russian gas before the war, and Moscow's move to cut off flows through the crucial Nord Stream 1 pipeline has fuelled fears of energy shortages and skyrocketing heating bills this winter.

Record-high inflation of 10 per cent in September has added to the pain, as consumers and businesses see their purchasing power eroded.

The German government expects the economy to shrink by 0.4 per cent in 2023.

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