Trade surplus narrows in June

Ireland’s seasonally adjust trade surplus fell in June, as imports surged 4 per cent and pushed the trade gap to less than €3 billion for the first time since January.

Preliminary data from the Central Statistics Office showed that exports rose by 1 per cent, or €85 million, to €7.15 billion compared with the previous month, while imports were up €161 million to €4.16 billion. That pushed the surplus down 2 per cent to €2.99 billion.

Year on year, the value of exports decreased by €703 million, or 9 per cent, to €7.36 billion as the value of organic chemicals exports fell by 24 per cent and medical products were hit by 12 per cent. That was partially offset by a rise in the exports of dairy products of €55 million, a 33 per cent hike.

The EU was the biggest export market for Ireland, accounting for 61 per cent, with the US accounting for 21 per cent during the month.

Imports fell by €9 million in value compared with June 2012, influenced by a large fall in the value of imports of organic chemicals, and a decline in transport equipment imports.

Although the figures highlighted a fall in the trade surplus, analysts noted the data also showed Irish exports recovered through the first half of the year, with exports increasing by 2.3 per cent in the second quarter of the year.

“With growth returning to the eurozone and the UK recovery gathering pace, exports should gain some momentum through the second half of the year,” Davy Stockbrokers wrote in a note.

Investec’s Emmett Gaffney noted that goods exports remained weak in comparison to the same period a year earlier.