German imports fell more sharply than exports in May to push the trade surplus to its highest level since last November's record and point to a subdued second quarter for Europe's largest economy.
In seasonally adjusted terms, the surplus was €17.6 billion ($23.9 billion), up from €15.8 billion in April, the Federal Statistics Office said today. Economists had forecast a May surplus of €16 billion in a Reuters poll.
Exports fell 0.7 per cent on the month in adjusted terms to €79.3 billion, the Office said. Imports dropped 3.6 per cent to €61.7 billion. Economists had predicted exports would rise 0.9 per cent on the month, with imports seen up 1 per cent.
Foreign trade should still make a positive contribution to growth in the second quarter of this year, economists said. They pointed to a 4.4 per cent rise in foreign manufacturing orders in May as evidence of solid demand from abroad.
In the first quarter of this year, foreign trade sliced 2.0 percentage points from German GDP. GDP grew by 0.5 per cent on the quarter in the January-March period.
In a sign of strength in Germany's export sector, BMW reported on Friday a 15.1 per cent jump in vehicle sales in June as brisk demand in China and Russia complemented double-digit growth in western Europe.