German exports fall in October

German exports fell by 1.1 per cent in October on a monthly basis, official data showed yesterday, but an upward trend remained intact while the economy has also found domestic support.

The trade surplus for Europe’s biggest economy narrowed to €14.2 billion from €16.8 billion in September amid a rise in imports, according to data released by the federal statistics office.

The value of German imports came to €72.6 billion, up 0.3 per cent from September, the Destatis office said in a statement.

Exports, the backbone of Germany’s economy, dipped to €86.8 billion.

The rise in imports coincided with a pick-up in domestic consumption, traditionally the German Achilles’ heel.

“The German upswing has a broader basis now, however, and is not just supported by overseas demand for German products,” Commerzbank economist Ulrike Rondorf said.

A 12-month comparison revealed a 19.8 per cent expansion in exports and a 21.0 per cent boost in imports.

Germany’s 26 fellow European Union members, the country’s primary trade partners, absorbed German imports worth €52.9 billion in October, marking a 14.9 per cent rise on the year. The value of imports from these countries grew 18.3 per cent to €47 billion.

Germany sold goods worth €33.9 billion to countries outside the European Union, up 28.4 per cent, while imports from EU members reached €25.6 billion, a rise of 26.4 per cent.

“The upward trend in foreign trade is still intact,” Rondorf noted, because exports were 1.7 per cent higher than the average for the third quarter of 2010.

On Tuesday, the economy ministry said industrial orders rose by a monthly 1.6 per cent in October, with its data showing that domestic orders gained a solid 2.4 per cent while those from abroad were up by 0.8 per cent.