Weak French trade data clouds recovery

12th September 2006, Comments 0 comments

PARIS, Sept 12, 2006 (AFP) - The French trade balance showed a worsening deficit in July when exports fell, leading economists to say the current economy recovery was fragile.

PARIS, Sept 12, 2006 (AFP) - The French trade balance showed a worsening deficit in July when exports fell, leading economists to say the current economy recovery was fragile.

In the last 12 months the balance showed a cumulative deficit of EUR 26.914 billion.

Customs data showed a trade deficit in July of EUR 3,700 billion from a revised deficit in June of EUR 2.375 billion on an adjusted basis.

Industrial exports, which had been "very dynamic" in the first half fell by nearly one billion euros, owing largely to a fall in mobile telephone sales.

However, exports of professional equipment remained high. This was particularly the case for exports of aeronautical equipment to Germany owing to reorganisation of the Airbus airliner programmes.

Overall exports totalled EUR 31.696 billion in July after EUR 32.686 billion in June, showing an increase of 1.3 percent on a three-month comparison and 9.6 percent over 12 months.

But in July, Airbus sales totalled 19 aircraft worth EUR 1.113 billion after 24 worth EUR 1.331 billion in June.

Imports rose to EUR 35.396 billion from EUR 35.061 billion in June, an increase of 2.9 percent over three months and 12.5 percent over 12 months.

At finance house Xerfi, economist Alexander Law commented that "it is a new blast of cold air".

On Monday the statistics institute INSEE had disappointed economists by reporting that industrial production had fallen by 1.3 percent in July.

At Natexis Banques Populaires, economist Carol Hainaut said that just when the French economy seemed to be gathering speed with growth of 1.1 percent in the second quarter, the latest data "again shows up the fragility of this recovery".

Copyright AFP

Subject: French news

0 Comments To This Article