Germany’s exports remained flat amid trade wars and industrial production declined more-than-expected in June, official data showed Tuesday.
Exports registered nil growth in June from May after rising 1.7 percent, Destatis reported. Economists had forecast a 0.4 percent drop.
On the other hand, monthly growth in imports accelerated to 1.2 percent from 0.7 percent in May. This was much faster than the expected 0.2 percent rise.
As a result, the trade surplus fell to a seasonally adjusted EUR 19.3 billion from EUR 20.4 billion in May.
Year-on-year, exports grew 7.8 percent, in contrast to a 1.3 percent fall in May. At the same time, imports rose at a faster pace of 10.2 percent after increasing 0.9 percent.
Exports totaled EUR 115.5 billion, while imports were valued at EUR 93.7 billion, the highest since records began in 1950.
Consequently, the unadjusted trade surplus decreased to EUR 21.8 billion in June from EUR 22.1 billion in June 2017.
The current account surplus increased to EUR 26.2 billion in June from EUR 22.4 billion in the same period of last year.
Another report from Destatis revealed that industrial production decreased 0.9 percent month-on-month in June, reversing a revised 2.4 percent rise in May. Output was forecast to fall 0.5 percent.
Excluding energy and construction, industrial output decreased 0.8 percent in June.
Year-on-year, industrial output advanced 2.5 percent, which was weaker than the 3 percent increase seen in the previous month.
The economy ministry said despite weak orders, the upturn in the manufacturing sector should continue at a moderate pace. The ministry added that business climate is still clearly in the positive territory despite a slowdown.
With the domestic economy in good shape and given the recent ceasefire in the tariff war, Jennifer McKeown, an economist at Capital Economics, said she expects only a modest slowdown in German growth.
The euro area economy expanded 0.3 percent in the second quarter. Destatis is set to issue GDP data for the largest euro area economy on August 14.