Germany: Exports fall sharply in October
December 9, 2011
In October, exports dropped a seasonally and working day adjusted 3.6% over the previous month, which contrasted the revised 1.0% expansion observed in September (previously reported: +0.9% month-on-month) and undershot market expectations, which had exports falling a more moderate 1.3%. Imports declined 1.0% in October, which was double the 0.5% contraction recorded in September. Compared to the same month last year, exports slowed considerably from a 10.6% expansion in September to a 3.8% increase in October, which marked the slowest pace since June. The annual reading reflected a decline in exports to the Eurozone (-0.4% year-on-year), as the sovereign debt crisis dampens demand. Meanwhile, imports grew 8.6% in October, which was below September's 11.9% expansion. As a result, the trade surplus narrowed from EUR 17.3 billion in September to EUR 11.6 billion in October.
Author: Ricardo Aceves, Senior Economist