NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

UPDATE 1-German trade surplus hits 17-month high in Nov

Published 01/08/2010, 02:58 AM
Updated 01/08/2010, 03:00 AM
GC
-

* 3rd consecutive monthly rise in exports

* Import drop over twice as large as export rise

(Adds background, economist comment)

By Brian Rohan

BERLIN, Jan 8 (Reuters) - German exports rose more than expected and imports fell in November, pushing the country's trade surplus to its highest level in 17 months in a boost to fourth quarter growth, data showed on Friday.

Adjusted for seasonal swings, exports were 17.2 billion euros ($24.7 billion) higher than imports in November, making the trade surplus the highest since June 2008, preliminary Federal Statistics Office figures showed.

"The surplus has really widened which means there will be a big boost to growth from net trade in the fourth quarter," said economist Sebastian Wanke from Dekabank.

Exports rose for a third consecutive month, increasing by 1.6 percent month-on-month to 70.6 billion euros, while imports fell by 5.9 percent to 53.4 billion euros.

The figures compared to an expected 0.5 percent rise in exports and 1.2 percent increase in imports, which economists polled by Reuters last week had forecast would put the November trade surplus at 12.4 billion euros.

The higher-than-expected rise in exports highlighted a global upswing in demand for products from Germany, which has been the world's biggest exporter of goods since 2003 although China may have overtaken it in 2009.

With the larger part of November's surplus caused by an unexpected fall in imports, the trade data pointed to other weak links in the recovery of Europe's largest economy.

"The surprise is with imports, which have collapsed by almost six percent," said Dirk Schumacher from Goldman Sachs. "That's a sign that domestic demand is getting weaker."

Latest manufacturing orders figures for Germany suggested growth in foreign demand is not guaranteed.

Weaker-than-expected industrial data released on Thursday showed foreign orders declined in November, suggesting the momentum of the economic recovery may ease in 2010. (Additional reporting by Dave Graham; editing by Chris Pizzey)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.