Germany: Exports decline more than expected in June
August 8, 2012
In June, exports dropped seasonally and working-day adjusted 1.5% over the previous month, which contrasted the revised 4.2% expansion recorded in May (initially reported: +3.9% month-on-month) and exceeded market expectations that had exports declining 1.3%. Imports followed suit and decreased 3.0% over the previous month, which contrasted the 6.2% increased recorded in May. Compared to the same month last year, overseas sales accelerated from a revised 0.8% increase in May (initially reported: +0.5% year-on-year) to 7.3% expansion in June (EUR 94.6 billion), which reflected a favourable base of comparison. Imports bounced back and grew 1.5% in June (EUR 76.7 billion), contrasting the 0.2% contraction observed in May. As a result, the trade surplus recorded EUR 17.9 billion in June, well above the EUR 12.5 billion registered in the same month last year. The Federation of German Wholesale, Foreign Trade and Services (BGA) expect export growth to reach 6.0% this year, which will push exports to a new-record high of EUR 1.12 trillion.