German exports unexpectedly fall as trade volatility bites

By Maria Martinez

Sept 8 (Reuters) - German ‌exports unexpectedly fell ​in ​July, as weaker shipments to European Union countries and China underscored the fragility of a trade-led recovery in Europe's largest economy.

Exports fell by 0.8% ‌in July compared with the previous month, data from the federal ⁠statistics office showed on Tuesday. Economists polled by Reuters had expected a 0.1% increase.

Exports to EU countries ‌dropped by 1.6%, while those ‌to non-EU countries increased by 0.2% on the month. Exports to the United States jumped 19.1% on the month after falling 14.2% in June.

"Germany's foreign trade ​sector is feeling the volatility in trade policy directly," said Volker Treier, head of foreign trade at the German Chambers of Commerce and Industry (DIHK).

Stronger exports ⁠helped the German economy grow by 0.3% in the second quarter but economists warned that conditions remain challenging.

"The volatile ​figures show how fragile the economic situation remains. Germany is still a long way from being out of the woods," said ​Dirk Jandura, president of the BGA German trade ‌association.

Imports dropped by 5.7% on the month, meaning Germany's trade surplus with the rest of the world grew to €21.3 billion ($24.8 billion) ⁠in July from €15.4 billion in June.

Sentiment among exporters has improved considerably, with an Ifo survey of expectations rising in August to the highest level since February 2022, shortly before Russia's ⁠invasion of Ukraine.

"The export industry is picking up speed," said Ifo's Klaus Wohlrabe.

SHARP CONTRAST WITH CHINESE ​EXPORT FIGURES

The trade numbers — and separate data from France showing a widening French trade deficit in June — were in sharp contrast to new figures showing a 25% surge in Chinese exports ‌year-on-year in August on the back of high-tech and AI-related products.

German companies are increasingly feeling competitive pressure from Chinese rivals, ‌a DIHK survey showed last week.

German exports to China fell by 9.5% on the month, ⁠while imports from China fell ‌7.5%, statistics office data showed.

($1 = ​0.8598 euros)

(Reporting by Maria Rugamer in Gdansk and Maria Martinez in Berlin; Additional reporting by Rene Wagner; Editing by Ludwig Burger and ‌Catherine Evans)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Hormuz disruptions hitting small businesses hardest, UN trade agency warns 
• Novartis twin drug setbacks pile pressure on pipeline and CEO
• ASML breaks ground on new manufacturing facilities in major expansion