Germany: Exports fall more than expected in October
November 8, 2010
Overseas sales contracted, pointing to a feeble start to the fourth quarter and emphasising the global economic weakening. In October, exports dropped a seasonally and working day adjusted 1.1% over the previous month, following on a robust 3.0% expansion observed in September. The reading contrasted market expectations that had exports remaining unchanged. Meanwhile, imports bounced back in October, rising 0.3% over the previous month on a working day and seasonally adjusted basis (September: -1.2% month-on-month). Compared to the same month last year, in October, exports grew 19.8% and imports expanded 21.0%, reducing the trade surplus from EUR 16.8 billion in October to EUR 14.2 billion in November. Exports are likely to continue expanding, albeit at a more moderate pace, as a strong euro dampens the attractiveness of German overseas sales and Europe's sovereign debt crisis curbs demand within the region.
Author: Ricardo Aceves, Senior Economist