German exports slump as French services slow
GERMAN exports fell at their fastest pace for three years in December, data from the German Federal Statistics Office showed yesterday – after foreign sales hit a record high in 2011.
French industrial confidence stagnated in January, according to the Bank of France, and Spanish industrial output contracted for the fourth consecutive month.
German exports fell at a seasonally adjusted 4.3 per cent, well above economists’ forecasts and denting GDP figures which initial estimates suggested contracted slightly in the quarter.
Imports also declined, falling 3.9 per cent. The trade surplus overall narrowed from €14.9bn (£12.5bn) in November to €13.9bn.
Meanwhile French services slowed to an index reading of 93, its 10th consecutive decline, to its lowest level since March 2011.
The overall index hovered at 96, up from 95 in December and indicating GDP was flat in the final quarter of 2011.
Spain’s recession deepened further with a 3.7 per cent fall in factory output. However, the pace of decline slowed from November’s seven per cent drop.