Germany's trade surplus unexpectedly shrank in May as the biggest rise in imports in almost three years outpaced exports to indicate net trade will have made a smaller contribution to second-quarter GDP.
Data from the Federal Statistics Office today showed the seasonally adjusted trade surplus dipped to €12.1 billion in May from €12.7 billion in April. Analysts polled by Reuters had forecast the surplus would be €13.0 billion.
Europe's largest economy exported 3.8 per cent more goods in May, worth an adjusted €64.7 billion, while imports rose by 5.9 per cent to €52.6 billion.
Bundesbank data showed both these adjusted values were the highest since re-unification in 1990. Analysts said the euro's decline against the dollar during May could have helped German exporters to sell their goods in key export markets outside the euro zone.
Andreas Rees, an economist at HVB Group in Munich, said in a research note the rise in imports - which was the biggest monthly gain since August 2002 - was a positive sign.
"The second consecutive increase in nominal imports can be attributed to robust internal demand, given the fact that import prices in May dropped," he said. "The oil price, for example, was down roughly two euros per barrel."
Weak domestic demand has held back growth in Germany for years, but recent indicators suggest it may be firming.
Consumer spending accounts for around 60 per cent of German gross domestic product, which is expected to grow about 1 per cent in 2005.