Germany’s exports dropped unexpectedly in August, raising concerns that the euro zone’s largest economy is losing momentum in the third quarter.
German exports fell 0.8% month-on-month in August, pointing to weaker momentum in the country’s economy after a strong first half of the year.
The decline was driven largely by a sharp drop in shipments to the United States, while imports rose during the month, according to data released by the federal statistics office.
“Trade is where German resilience is faltering,” said Carsten Brzeski.
Volker Treier said the latest figures showed that Germany’s export recovery had been only a “faint breeze.”
Asian competitors were hit harder by the closure of the Strait of Hormuz in the second quarter, but Germany’s export performance weakened in the third quarter.
Imports increased by 0.9% in August on a calendar and seasonally adjusted basis, narrowing Germany’s trade surplus from €21.6 billion in July to €19.5 billion.
German exports fell 0.8% month-on-month in August, pointing to weaker momentum in the country’s economy after a strong first half of the year.
The decline was driven largely by a sharp drop in shipments to the United States, while imports rose during the month, according to data released by the federal statistics office.
“Trade is where German resilience is faltering,” said Carsten Brzeski.
Volker Treier said the latest figures showed that Germany’s export recovery had been only a “faint breeze.”
Asian competitors were hit harder by the closure of the Strait of Hormuz in the second quarter, but Germany’s export performance weakened in the third quarter.
Imports increased by 0.9% in August on a calendar and seasonally adjusted basis, narrowing Germany’s trade surplus from €21.6 billion in July to €19.5 billion.
Higher prices linked to the Iran conflict and uncertainty over US tariffs have also added pressure to Germany’s trade performance.
The German economy grew by 0.4% in the first quarter and 0.3% in the second quarter. Thomas Gitzel said third-quarter growth would not match that pace and was likely to remain modest.
Exports to the European Union declined 0.6%, while shipments to countries outside the bloc fell 1.1%. Exports to the United States dropped 6.3%, while shipments to the United Kingdom increased 16.7% and those to China rose 4.7%.
At the same time, imports from China increased by 11.0%.
The figures highlight continued pressure on Germany’s export-dependent economy as weaker overseas demand, higher costs and trade uncertainty weigh on growth.
