Carsten Brzeski, chief economist at ING, notes that German exports rebounded in September, increasing by 1.5% month-on-month.
“Also important, the August numbers were revised upwards to -0.9% MoM, from initially -1.8% MoM. With imports increasing by 1.3% MoM, the trade surplus increased to €21.1 billion, from €19.5 billion in August.”
“Today’s trade data leave analysts somewhat scratching their heads. Despite the ongoing trade woes, German exports had a better-than-expected quarter. Also, for total exports, German exports to the US have become as important as in 2015. In the first nine months of the year exports to the US accounted for 9% of all German exports. At the same time, however, exports to China are suffering.”
“With today’s data, a technical recession is not yet a done deal. In fact, today’s trade data suggest that there has been hardly any negative drag from net trade on 3Q GDP.”
“Still, contraction or not, the fact remains that the German economy has been in de facto stagnation for more than a year. This is clearly nothing to become too cheerful about.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.