German Exports Fall in August

German exports fell in August by their largest amount since the height of the global financial crisis in 2009, and imports were also down sharply.

Data from the Federal Statistics Office showed seasonally-adjusted exports fell by 5.2% from July to €97.7bn (£71.8bn).

Imports fell 3.1% to €78.2bn, the biggest one month drop since November 2012.

Meanwhile, manufacturing turnover fell by 1.3% from July after sales to euro area countries declined.

The data follows sharp declines in industrial orders and output in August, suggesting that waning demand from abroad, particularly China and other emerging markets, may be leaving its mark on Germany.

“This is a strong fall, the kind you don’t see every day,” said Holger Sandte, chief European economist at Nordea. “Weakness in China, Brazil, Russia and other markets is having an impact.”
Germany, the eurozone’s biggest economy, has reported four quarters of growth in a row.

But as well as a slowdown in emerging economies, the diesel emissions scandal that has hit Volkswagen could have knock-on effects on the rest of the German economy.

The German carmaking industry accounts for a large chunk of exports – 17.9% of Germany’s €1.1 trillion in exported goods last year.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza