German exports suffered their steepest month-on-month decline in more than 18 months in May, as continued weakness in the eurozone and other key markets held back growth.
Exports, the traditional driver of growth in Europe’s biggest economy, fell 6.5pc to €88.2bn (£76bn) in May, from €94.3bn in April, according to Destatis, Germany’s statistics office. This was the biggest drop since December 2011. On an annual basis, total exports fell 4.8pc, driven by a 9.6pc drop in exports to the eurozone.Imports also fell to €75.2bn in May from €76.4bn in April, leaving Germany with a trade surplus of €13.1bn, sharply lower than the €17.6bn forecast by economists.
“All in all, today’s disappointing trade data show that the eurozone’s economic engine is still stuttering,” said Carsten Brzeski, an economist at ING. “After a strong start to the second quarter, May data have been rather disappointing. Nevertheless, we still think that at the end of a weather and holiday driven rollercoaster ride, the German economy should finally return to full strength in June.”