German exports and industrial production declined in July

September 7, 2018 10:50 amComments Off on German exports and industrial production declined in JulyViews: 9

German exportsGerman exports and industrial production reported an unexpected decline in July, which is a new sign that producers in the largest European economy feel the impact of US President Donald Trump’s protectionist trade policies.

According to data from the Federal Statistical Office, the seasonally adjusted exports for July decreased by 0.9% on a monthly basis, while imports increased by 2.8%. This is the biggest surge in imports for nearly four years, reaching a record total volume of 94.5 billion EUR.

The both indicators were expected to grow by 0.2%

Meanwhile, the seasonally adjusted trade surplus of Germany shrank to 15.8 billion EUR from 19.3 billion EUR in June

The separate data from the Economy Ministry show a decline in industrial output of 1.1%.

According to the authorities in Berlin, the industrial production will recapture soon after the beginning of the third quarter, which was more subdued due to the “temporary difficulties in registering passenger cars”.

Global markets are still under pressure after Donald Trump threatens to introduce a new round of duties on Chinese import for 200 billion USD.

The industrial orders in Germany declined by 0.9% in July following a revised decline of 3.9% in the previous month, data released on Thursday showed.

Excluding foreign trade, the German domestic economy remains strong. The Ifo Economic Institute on Thursday slightly increased its forecast for growth in the German economy in 2018 to 1.9% from the previous 1.8%, pointing to a better-than-expected performance in the first half of the year.

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