German imports fell by more than exports rose in May, pushing the trade surplus higher than expected to €10.3 billion ($14.3 billion) and lending some support to hopes its export engine may be firing up again.
Imports fell 2.1 per cent on the month to €52.7 billion, their lowest level since July 2005, while exports rose 0.3 per cent to hit €63 billion, data from the Federal Statistics Office showed today.
The trade surplus hit its highest level since December 2008 as a result.
“It is far too early to declare the return of Germany's growth engine but one thing is for sure: there is life in the old dog yet,” said Carsten Brzeski from ING Financial Markets.
Economists surveyed by Reuters had forecast the trade surplus would hold steady at €9 billion. Imports were seen up by 0.8 per cent month-on-month and exports were expected to rise 1.5 per cent.
Despite a lower-than-expected export rise, economists still saw the figures as a positive sign that a bottom has been reached.
“We can't talk about a change in trend. But the freefall appears to have stopped. There is a lot to suggest that foreign trade supported the economy again in the second quarter,” said Thorsten Polleit from Barclays Capital.
The figures were the latest in a series of positive signs from Germany, Europe's largest economy, which has been hit hard by the global financial crisis.
May industry data released this week showed output growing at its fastest rate in 16 years, while orders surged ahead to a near two-year high, suggesting more positive news could lie ahead.
German GDP plunged 3.8 per cent in the first quarter of 2009, weighed down by a collapse in exports, towards which its industry is geared. The government expects gross domestic product (GDP) to contract some 6 per cent this year.
Reuters