German exports weaken

German exports weakened in June, data showed yesterday, reinforcing fears the global economy hit a soft spot that month and prompting…

German exports weakened in June, data showed yesterday, reinforcing fears the global economy hit a soft spot that month and prompting fresh questions about the sustainability of the country's upturn.

The Federal Statistics Office said Germany's trade surplus widened to €14.7 billion in June, a record for the month.

However, exports fell compared with May on a seasonally-adjusted basis in what economists said was a potential warning sign.

Data to be released tomorrow should show Germany's economy grew 0.5 per cent in the three months to end June compared with the first quarter, according to a Reuters poll of 31 economists last week.

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Economists said the trade data was consistent with that forecast but reinforced doubts about what would happen to the German economy if its export motor stalls.

According to the statistics office, exports rose an unadjusted 16.1 per cent year on year to €63.0 billion, while imports rose 10.7 per cent to €48.3 billion.

However, compared with May, exports fell by a seasonally adjusted 5.8 per cent, while imports eased 4.7 per cent.

It was the biggest month-on-month decline in exports since October 2003, according to Bundesbank figures.