UPDATE 1-German Sept exports strong, bode well for Q3 growth

Published 11/08/2010, 03:06 AM
Updated 11/08/2010, 03:08 AM

* Exports rise 3.0 pct m/m, twice as fast as forecast

* Trade surplus widest since October 2008

* Imports fall 1.5 pct m/m

(Adds detail on trade surplus, economist comment, background)

BERLIN, Nov 8 (Reuters) - German exports grew twice as fast as expected in September and the trade surplus to its widest in nearly two years, data showed on Monday, pointing to solid economic growth in the third quarter.

Adjusted for seasonal swings, exports rose by 3.0 percent on the month and imports fell by 1.5 percent, the figures from the Federal Statistics Office showed.

A Reuters poll had forecast exports would rise by 1.5 percent, with imports seen gaining 0.6 percent.

"This clear rise is good news," said UniCredit economist Alexander Koch, adding that foreign trade should make a positive contribution to economic growth in the third quarter.

"We're expecting a good result that should be broad-based, with GDP rising by 0.7 percent, because the retail figures and domestic investment are pointing upwards," he said.

The German economy, Europe's largest, grew by a record 2.2 percent in the second quarter, prompting Economy Minister Rainer Bruederle to talk of an "XL upswing".

Underlining German companies' success in tapping emerging markets for growth, Linde last week beat forecasts for third-quarter profit, with its main gases division on track to achieve record sales as demand in Asia for gases used in mining, chemicals and petroleum refining rises sharply.

The trade figures showed the adjusted trade surplus grew to 15.6 billion euros from 12.0 billion in August, its widest since October 2008 and compared with expectations for 11.9 billion euros.

Finance Minister Wolfgang Schaeuble defended Germany against criticism over its export surplus in an interview with Der Spiegel news magazine released at the weekend.

"The German export success is not due to any currency tricks but rather due to the improved competitiveness of German companies," said Schaeuble, who also renewed his criticism of the U.S. Federal Reserve's move to buy $600 billion worth of government bonds.

"The American growth model is stuck in a deep crisis," he added.

(Reporting by Paul Carrel; Editing by John Stonestreet)

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