German exports boom as recovery builds

German exports and imports surged to record levels in July in the latest sign that growth in Europe's largest economy retained…

German exports and imports surged to record levels in July in the latest sign that growth in Europe's largest economy retained momentum at the start of the third quarter.

Germany's trade surplus in July was unchanged compared with June at €11.9 billion in seasonally adjusted terms, Federal Statistics Office data showed.

The trade figures follow unexpectedly strong industrial output and orders data for July, a month that also saw a big jump in government tax receipts and a clear rise in employment.

German GDP expanded by 0.9 per cent quarter-on-quarter in the April-June period, the strongest performance in over five years. Most analysts expect the economy to grow at its fastest rate in six years in 2006.

READ MORE

Month-on-month, exports rose 2.3 per cent in adjusted terms, the third increase in the past four months, the office said.

Imports rose 2.8 per cent after a gain of 3.2 per cent in June.

The value of July's exports was €73.8 billion in adjusted terms, with that of imports €61.9 billion. Both figures were the highest on record, the office data showed.

A breakdown of the data showed that German exports were fairly evenly spread around the world, with the biggest increase going to non-euro zone countries inside the European Union.