Saturday, 9 July 2011

German exports bounce back in May

8 July 2011 Last updated at 09:22 GMT


 Freight containers in the port of Hamburg Economists expect German export growth to slow down in coming months Exports from Germany staged a stronger-than-expected recovery in May.



The value of goods and services sold rose 4.3% from a month earlier to 92.1bn euros ($132bn, £82bn).


Imports also rose by 3.7% - not enough to stop the country's trade surplus jumping from 10.8bn to 14.8bn euros.


The export recovery largely reverses a 5.6% drop seen the month before, which had sparked concern that the post-recession trade bounce may have topped out, presaging an economic slowdown.


Compared with a year earlier, exports were up 19.9%, while imports had risen 15.6%, according to official data from the Federal Statistics Office.


"The upswing is still there," said Andreas Rees, economist at Italian bank Unicredit. "Companies are sitting on a mountain of backlogged orders... the general picture for exports remains intact."


Economists expect the dynamism of the German export recovery to dissipate over coming months as demand from China and the US - particularly for engineering and investment goods - weakens.


But the hope is that stronger demand from German consumers will take up the slack.


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