German Exports, Imports Recover in August After July Slump
German Exports, Imports Recover in August After July Slump:- German imports and exports rebounded decisively in August after an unexpected slump in July in the latest set of data to reassure investors about the country’s third-quarter growth outlook.
Provisional figures from the Federal Statistical Office pointed to a 5.4% month-on-month increase in exports, after a 2.6% drop in July. That was well above the consensus for a 2.2% rebound and the fastest pace of export growth in more than six years. Imports, which had slipped 0.7% in July, were up 3.0% month-on-month, striding ahead of the 0.7% growth rate analysts had predicted. On the year August exports rose by 9.8% and imports increased by 5.3%.
The resultant trade balance swelled more than expected to a record €22.2 billion ($24.8 billion) in August from €19.4 billion. That took the current account balance to a surplus of €17.9 billion, up from €14.4 billion in July.
The figures build a narrative of a post-Brexit-vote rebound after recent news of improving business confidence, industrial output and consumer price growth. That positive flow of data comes after initial reports suggesting Germany, and therefore the euro zone as a whole, may have born the brunt of the U.K.’s vote to leave the European Union, with Britain remaining relatively unscathed.
The August trade figures showed a faster pace of growth in German exports to EU countries, compared with German exports to other euro zone nations, at 10%, compared with 8.8%, respectively. Exports to countries outside the EU rose by 9.6%, boding well for German manufacturers after volatility in major global markets including China and Brazil had crimped Germany’s trade balance in recent months.
Source:-https://www.thestreet.com/story/13846830/1/german-exports-imports-recover-in-august-after-july-slump.html
