Weak February trade data joins series of German woes

Official figures showed yesterday  that Germany’s imports and exports fell in February, aligning with a string of weak economic data readings from the first quarter.

Imports fell 1.6 percent month-on-month, to 92.3 billion euros ($103.6 billion), while exports dropped less quickly, shedding 1.3 percent to 110.9 billion, federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects.

But there was a crumb of comfort for Europe’s powerhouse economy as the faster slide in imports meant its trade surplus climbed by 200 million euros, reaching 18.7 billion euros.

The trade surplus is a closely-watched indicator for Germany’s economy, which is more exposed to foreign trade than many comparable countries.

Global commerce has slipped back in recent months, weighing on

the country’s industrial performance.

Trade has been undermined by a slew of factors, including slow progress in US talks with China and Beijing’s economic slowdown, White House threats of car tariffs against the EU, the risk of a no-deal Brexit and weakness in emerging markets.

“There simply seem to be too many crises in global trade for the German export sector to defy them all,” commented economist Carsten Brzeski of ING bank.

Nevertheless, a falling euro exchange rate, resurgent global trade and US President Donald Trump’s repeated promises of an imminent deal with Beijing should mean “some improvement is in the offing,” he added.

 

Weak February trade data joins series of German woes

Official figures showed yesterday that Germanys imports and exports fell in February, aligning with a string of weak economic data readings from the first quarter. Imports fell 1.6 percent month-on-month, to 92.3 billion euros ($103.6 billion), while exports dropped less quickly, shedding 1.3 percent to 110.9 billion, federal statistics authority Destatis said in figures adjusted for seasonal and calendar effects. But there was a crumb of comfort for Europes powerhouse economy as the faster slide in imports meant its trade surplus climbed by 200 million euros, reaching 18.7 billion euros. The trade surplus is a closely-watched indicator for Germanys economy, which is more exposed to foreign trade than many comparable countries. Global commerce has slipped back in recent months, weighing on the countrys industrial performance. Trade has been undermined by a slew of factors, including slow progress in US talks with China and Beijings economic slowdown, White House threats of car tariffs against the EU, the risk of a no-deal Brexit and weakness in emerging markets. There simply seem to be too many crises in global trade for the German export sector to defy them all, commented economist Carsten Brzeski of ING bank. Nevertheless, a falling euro exchange rate, resurgent global trade and US President Donald Trumps repeated promises of an imminent deal with Beijing should mean some improvement is in the offing, he added.