German trade balance narrows in October

According to Destatis, the country’s Federal Statistical Office, the seasonally adjusted trade surplus fell only marginally to €22.5bn from a revised €22.8bn in September, consistent an unchanged annualised current account surplus of 8.2% of gross domestic product.

Adjusted for seasonal swings and calendar effects, exports fell 1.2% month-on-month in October, down from a 2.6% gain in September and below analysts’ expectations for 0.6% decline.

Exports in the Eurozone’s largest economy have suffered over the last 12 months, due to a drastic drop in demand from China and Russia and solid demand from other European countries.

Meanwhile, imports slumped 3.4% in October, reversing September’s 3.8% gain and falling below analysts’ expectations for a 1% decline.

“It is too early to make any predictions on net exports in the fourth quarter, but the renewed fall in oil prices indicate import deflators will play tricks with the data again,” said analysts at Pantheon Macroeconomics.

“Even if nominal imports fall, real imports likely will be boosted by falling import prices due to weakness in oil prices.”