Europe's largest economy grew by 0.4% quarter on quarter and 1.3% on the year, adjusted for price and calendar effects, the federal statistics office said.
Analysts polled by Reuters had expected the economy to grow by 0.3% in the third quarter on quarter and 1.2% on the year.
Increase In Household Spending
Household spending was the main reason for the bump in the quarter-on-quarter figure as consumers travelled and went out more after nearly all pandemic restrictions had been lifted.
In the previous quarter, the German economy grew slightly, by 0.1% quarter on quarter.
In its latest forecast, the government predicted the economy would grow by 1.4% this year and slump by 0.4% next year.
An economy ministry spokesperson said current indicators continue to point to a recession in the six months through March.
"The preconditions for a mild course of the recession are that no acute gas shortage situation arises, that no difficult COVID developments occur and that the supply chains continue to stabilise gradually," added the spokesperson.
German consumer sentiment is set to barely change in December as government energy measures help stabilise morale at a level that is just above a record low set two months earlier and still signals declining consumption, a GfK institute survey showed.
The institute said its consumer sentiment index rose to negative 40.2 heading into December from a reading of negative 41.9 in November, and below forecasts from analysts polled by Reuters of negative 39.6.