By Maria Martinez
Oct 8 (Reuters) – German exports fell unexpectedly in August due to a sharp decline in shipments to the United States, showing that momentum in the euro zone’s largest economy is fading after a strong first half of the year.
Exports fell by 0.8% compared with the previous month, data from the federal statistics office showed on Thursday.
The result missed the forecast for a 0.6% increase in a Reuters poll.
“Trade is where German resilience is faltering,” said Carsten Brzeski, global head of macro at ING.
While German exporters benefited from Asian competitors being hit harder by the closure of the Strait of Hormuz in the second quarter, the third quarter so far has been a setback, Brzeski said.
“The current decline shows that the export recovery was only a faint breeze,” said Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry DIHK.
Imports were up 0.9% on a calendar and seasonally adjusted basis compared with July.
As a result, Germany’s trade surplus narrowed to €19.5 billion ($21.8 billion) in August from €21.6 billion in July.
Despite higher prices due to the Iran conflict and uncertainty caused by US tariffs, the German economy has shown resilience in the first half of the year, expanding by 0.4% in the first quarter and by 0.3% in the second quarter.
GDP growth in the third quarter will not be able to match the performance of the two preceding quarters, said Thomas Gitzel, chief economist at VP Bank, adding that it will likely amount to only modest growth.
Exports to EU countries dropped by 0.6% on the month in August, while exports to countries outside the EU decreased by 1.1%.
Exports to the United States fell by 6.3% compared with July, while exports to the United Kingdom increased by 16.7%.
Meanwhile, exports to China rose by 4.7%, but imports increased by a larger 11.0%.
($1 = 0.8935 euros)
(Reporting by Basile Day in Gdansk and Maria Martinez in Berlin, Editing by Friederike Heine and Xevi Fontdegloria)
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