Germany's trade surplus narrowed in July as imports rose at the fastest monthly rate for nearly two years.
The trade surplus narrowed to €13.5 billion in July from €14.7 billion in June, contrary to forecasts of a gap of €14.9 billion, suggesting higher oil prices may already be weighing on growth in Europe's largest economy.
Although exports and imports both grew on a monthly basis after dropping in June, the arithmetical effect of a lower trade surplus, should it continue, will be to slow Germany's recovery, economists said.
"The figures show that last month's drop was not the end of the export boom. But imports have also risen strongly, so it's not looking so good for the foreign contribution (to growth) in the third quarter as in the first half," said Mr Ralph Solveen of Commerzbank in Frankfurt.
Germany's economy grew 0.5 per cent on a quarterly basis in the three months to end-June after expanding 0.4 per cent in the first quarter, with growth due almost entirely to net exports.
Economists say the outlook for the economy hinges on a recovery in domestic demand that could offset an expected slowdown in global demand for German cars and machines.