BERLIN (Reuters) -The German economy grew in the second quarter, propped up by household and government spending and beating analyst expectations that saw it on the edge of a downturn, data showed on Thursday.

Europe's largest economy grew by 0.1% quarter on quarter and 1.7% on the year, adjusted for price and calendar effects, the federal statistics office said.

Analysts polled by Reuters had expected the economy to stagnate quarter on quarter in the three months to June, in line with the statistics office's earlier flash estimate.

Household expenditures were up by 0.8% compared with the first quarter, despite high inflation rates and an energy crisis, said the office. Government consumption grew by 2.3%.

Analysts said the concerns about the economy remained acute.

"The negative factors are currently so great that even a sharper downturn cannot be ruled out," VP Bank chief economist Thomas Gitzel said. "Or to put another way: A lot of positive things would have to happen for a recession not to materialise."

The S&P Global (NYSE:SPGI) flash composite Purchasing Managers' Index (PMI) showed similar sentiment, with the reading indicating contraction for the second month in a row, while analyst forecasts for the Ifo business climate survey for August, due later on Thursday, point to another drop.