German exports unexpectedly fall as trade volatility bites
EWG•German exports fall more than expected in July
German exports unexpectedly fell in July, as weaker shipments to European Union countries and China underscored the fragility of a trade-led recovery in Europe's largest economy.
Exports fell by 0.8% in July compared with the previous month, data from the federal statistics office showed on Tuesday. Economists polled by Reuters had expected a 0.1% increase.
Exports to EU countries dropped by 1.6%, while those to non-EU countries increased by 0.2% on the month. Exports to the United States jumped 19.1% on the month after falling 14.2% in June.
Trade volatility and China pressure weigh on the outlook
"Germany's foreign trade sector is feeling the volatility in trade policy directly," said Volker Treier, head of foreign trade at the German Chambers of Commerce and Industry (DIHK).
Stronger exports helped the German economy grow by 0.3% in the second quarter, but economists warned that conditions remain challenging.
"The volatile figures show how fragile the economic situation remains. Germany is still a long way from being out of the woods," said Dirk Jandura, president of the BGA German trade association.
Imports dropped by 5.7% on the month, meaning Germany's trade surplus with the rest of the world grew to €21.3 billion () in July from in June.
