French trade deficit unexpectedly widens in April

France´s trade deficit registered an unexpected increase in April due to a sharp jump in imports, led by demand for manufacturing goods.

The country´s external shortfall increased from -€4.2bn in March to -€5.2bn in April, as imports leapt by 4.1% month-on-month, largely reversing the previous month´s decline.

However, analysts at Pantheon Macroeconomics linked the surge in imports mainly to seasonal distortions resulting from the timing of Easter.

In parallel, exports rose by a solid 1.8% month-on-month.

Looking out to the second quarter, the think-tank expected France´s deficit to continue growing in the second quarter, as the slowdown in Britain´s economy ahead of the 23 June referendum ate into its trade surplus.

However, rising oil prices were expected to depress the value of imports in inflation-adjusted or 'real' terms, helping to boost second quarter gross domestic product.