German exports hit record level in August

City A.M. Reporter
German exports rose to their strongest level ever in August, widening the trade surplus more than expected, official data showed on Monday, suggesting Europe's bulwark economy remains on a growth path despite weakening expectations.

Exports rose by 3.5 per cent on the month to 90.5bn euros (£78bn), data from the Federal Statistics Office showed, after faltering in the past few months.

"This is good news, again defying recession worries for the German economy – for the time being –and showing the third quarter will be better than many people expect," ING's Carsten Brzeski said, noting that he expected 0.4 percent growth in gross domestic product in the third quarter.

"We have seen normalization of exports, if you take the last three months altogether," he added. Exports had fallen 1.2 and 0.5 per cent in the previous two months. "The double digit growth numbers are of the past, but stimulus is still coming from emerging markets which continue to catch up."

Imports remained unchanged. The forecasts in a poll of Reuters economists had been for a 1.5 per cent rise in exports and 0.6 percent gain in imports.

The seasonally-adjusted trade surplus widened to 13.8bn euros from 10.6bn euros in July.