German trade surplus for May widens

Germany's trade surplus with therest of the world widened in May to €10.1 billion from €9

Germany's trade surplus with therest of the world widened in May to €10.1 billion from €9.2billion in April but deteriorated in the first five monthsof the year, Federal Statistics Office data showed today.

The Office said exports totalled €54.3 billion, while imports amounted to €44.2 billion.

Adjustedfor seasonal factors, exports rose 3.7 per cent month on month,while imports rose 2.2 per cent month on month.

The May data flew in the face of recent surveys showingGerman firms are finding it hard to sell their goods abroad dueto the euro's surge against other major currencies this year.

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The June BME/Reuters German purchasing managers index surveyfound the volume of incoming new business had fallen for thefourth consecutive month, with some panel members blaming thestronger euro. That could spell bad news for exports in themonths ahead.

The Statistics Office reported separately today thatsteel output in June fell 7.0 per cent year-on-year, bringing toan abrupt end a strong first half performance. The steel marketis extremely sensitive to price.