German exports fall in October: data

8th December 2010, Comments 0 comments

German exports fell by 1.1 percent in October on a monthly basis, official data showed on Wednesday, but an upward trend remained intact while the economy has also found domestic support.

The trade surplus for Europe's biggest economy narrowed to 14.2 billion euros (18.7 billion dollars) from 16.8 billion in September amid a rise in imports, according to data released by the federal statistics office.

The value of German imports came to 72.6 billion euros, up 0.3 percent from September, the Destatis office said in a statement.

Exports, the backbone of Germany's economy, dipped to 86.8 billion euros.

The rise in imports coincided with a pick-up in domestic consumption, traditionally the German Achilles' heel.

"The German upswing has a broader basis now, however, and is not just supported by overseas demand for German products," Commerzbank economist Ulrike Rondorf said.

A 12-month comparison revealed a 19.8-percent expansion in exports and a 21.0-percent boost in imports.

Germany's 26 fellow European Union members, the country's primary trade partners, absorbed German imports worth 52.9 billion euros in October, marking a 14.9 percent rise on the year.

The value of imports from these countries grew 18.3 percent to 47.0 billion euros.

Germany sold goods worth 33.9 billion euros to countries outside the European Union, up 28.4 percent, while imports from EU members reached 25.6 billion euros, a rise of 26.4 percent.

"The upward trend in foreign trade is still intact," Rondorf noted, because exports were 1.7 percent higher than the average for the third quarter of 2010.

On Tuesday, the economy ministry said industrial orders rose by a monthly 1.6 percent in October, with its data showing that domestic orders gained a solid 2.4 percent while those from abroad were up by 0.8 percent.

© 2010 AFP

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