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Title: German exports surge to record level in June, outlook still gloomy

Aug 03, 2022 05:05AM ET

By: AnalysisWatch

The value of German exports jumped 4.5% in June to a record level, although economists have warned that much of the increase is likely due to rising prices.

Germany's exports rose for a third straight month, beating forecasts for a 1% increase and boosting Germany's seasonally adjusted trade surplus to 6.4 billion euros ($6.51 billion) in June, well above the consensus for a surplus of 2.7 billion euros.

Preliminary data last month showed Germany running its first trade deficit in more than 30 years, but Wednesday's figure for May of 1.0 billion euros was revised to a surplus of 0.8 billion euros.

The German economy stagnated in the second quarter as the war in Ukraine, the pandemic, and supply disruptions brought Europe's largest economy to the brink of decline.

The Association of German Chambers of Industry and Commerce has warned that export-dependent German industry faces a difficult second half of the year.

Supply chain disruptions and high costs for energy, raw materials and imported materials continue to hamper production.

In addition, the cooling of the economies of important export partners such as the US, China, or the euro area is also reducing demand for "Made in Germany" products.

Exports to the United States, Germany's largest export market, rose by 6.2% in June compared to May, while those to European Union member states increased by 3.9%. Exports to China increased by 2.4% in June.

According to the Federal Statistical Office, imports into Germany increased by 0.2% in calendar and seasonally adjusted terms in June. Analysts polled by Reuters had pointed to a monthly increase of 1.3%.

(1 USD = 0.9833 EUR)

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