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UPDATE 1-Imports push French Nov trade deficit wider

Published 01/08/2010, 04:18 AM
Updated 01/08/2010, 04:27 AM

* Trade deficit widens to 12-month high

* Imports outpace exports, as aircraft sales fall

(Adds details, quotes, background)

By James Mackenzie

PARIS, Jan 8 (Reuters) - France's trade deficit widened unexpectedly in November to its highest level in a year as weaker aircraft sales meant imports outpaced exports, data on Friday showed.

The trade deficit widened to 5.304 billion euros, from a revised 4.391 billion in October, well above expectations for a deficit of 3.8 billion euros, to reach the highest level since November 2008, customs office figures showed.

Imports rose to 34.204 billion euros from a revised 32.692 billion in October, while exports rose to 28.9 billion euros from 28.301 billion. (For full data, click on [ID:nLDE6070B3]).

On a three-month comparison, exports have fallen 0.6 percent, while imports have risen 4.3 percent, the data showed.

The widening trade deficit in the euro zone's second biggest economy contrasted sharply with data on the same day from Germany, France's biggest trading partner, which reported a surplus of 17.2 billion euros.

"They are clearly going the other way compared to what we see in Germany but that is nothing new to a certain extent," said Guillaume Menuet, an economist at Bank of America Merrill Lynch in London.

He said rising imports could mean a lower trade contribution to overall economic growth in the fourth quarter but he said the figures could also point to signs of stronger demand.

"The key of this report would be that this third, successive increase in import volumes is probably a sign that the French economy is starting to re-stock," he said.

"That's going to have a positive influence on industrial production in the coming months and therefore support this recovery story in the manufacturing segment."

(For more analyst comment, double click on [ID:nLDE60620H]

Airbus sales were down markedly in November, with unit sales falling to 17 in November from 24 the previous month, bringing revenues down to 785 million euros from 1.149 billion.

The decline was only partially balanced by sales of a Boeing aircraft to Russia and two satellites to Norway and by firmer sales of intermediate goods like metals, chemicals and plastics.

Pharmaceutical sales rose slightly but there was a near-20 percent jump in imports due to vaccine purchases from a Belgian distribution centre as well as purchases from the United States, Britain, Switzerland and Italy.

There were marked rises in imports of manufactured goods in other sectors as well, ranging from automobiles, where demand has been boosted by government purchase incentive schemes, to electronics materials.

Energy imports stabilised, while agricultural imports rose. (Additional reporting by Tamora Vidaillet and Sophie Taylor; editing by Chris Pizzey)

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