German exports plunge, ‘Performance not champion-like’ : ING Bank

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Berlin | Published: July 8, 2016 2:39:34 PM

German exports fell unexpectedly in May, posting their steepest monthly decline in nine months, and imports rose less than expected, data showed on Friday, in a further sign that weak global demand is curbing growth in Europe's largest economy.

The disappointing trade figures fleshed out a picture of economic weakness in Germany after data released earlier this week showed industrial output posted its biggest monthly drop in nearly two years and orders also came in weaker than expected. ( Source: Reuters)

German exports fell unexpectedly in May, posting their steepest monthly decline in nine months, and imports rose less than expected, data showed on Friday, in a further sign that weak global demand is curbing growth in Europe’s largest econom.

The disappointing trade figures fleshed out a picture of economic weakness in Germany after data released earlier this week showed industrial output posted its biggest monthly drop in nearly two years and orders also came in weaker than expected.

“Another indicator signalling that Germany’s performance is currently not champion-like,” ING Bank economist Carsten Brzeski said, adding that the only region to which German companies had exported significantly more than last year was the euro zone.

He pointed out that the German trade surplus with the single currency bloc was widening again, suggesting that buoyant domestic demand in Germany was not necessarily benefiting the rest of the euro zone.

Overall, seasonally adjusted exports dropped 1.8 percent on the month, data from the Federal Statistics Office showed. This was the biggest monthly fall since August 2015 and below the consensus forecast in a Reuters poll for a 0.25 percent rise.

Seasonally adjusted imports inched up 0.1 percent on the month, the data showed, short of market expectations for an increase of 0.4 percent.

The plunge in exports narrowed the seasonally adjusted trade surplus to 22.2 billion euros ($24.6 billion) from a revised 24.1 billion euros in April which was the highest monthly value so far.

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