Germany's trade surplus misses forecasts in July, exports plummet

Germany’s trade balance fell unexpectedly last month, official data showed on Friday. Data released by the Federal Statistical Office, Destatis showed that Germany's trade surplus, adjusted for seasonal swings and calendar effects, fell to 19.4 billion euros ($21.9 billion) from a revised EUR21.4 billion in June. Data missed analysts' expectations for a rise to 22.0B last month.

It was the latest in a string of weak economic data from Europe's industrial powerhouse at the start of the third quarter. Weak trade data confirm the picture already painted by earlier industrial data: the former powerful engine of the German economy –industry – is stuttering.

Details of the report showed that exports dropped by 2.6 percent m/m, from 0.2 percent in June while the imports decreased by 0.7 percent m/m. Compared with July 2015, exports were down a startling 10 percent.

Statistician at Destatis said this was probably down to a base effect, because July 2015 was among the strongest months of the entire year for Germany's exporters. He added it is quite unusual, because some companies already start their annual work holidays in July.