Germany's goods exports September report is better than expected

Seasonally adjusted exports increased by 1.5% on the month

Seasonally adjusted exports increased by 1.5% on the month

The German Federal Statistical Office reported that the nation's exports rose 4.6 percent on a year-on-year basis in September, whereas imports grew 2.3 percent.

Exports increased by 1.5 percent compared to August, when there was a revised decrease of 0.9 percent.

Carsten Brzeski, chief economist at ING Germany, said the figures suggested that "a technical recession is not a done deal" and that a third-quarter dip in output might be avoided "at the last minute".

Today's trade data leave analysts somewhat scratching their heads.

The economy shrank by 0.1 per cent in the second quarter, and recent data have suggested manufacturing fared badly in the third, which could put Germany in a technical recession - usually defined as two straight quarters of contraction. A survey showed Germany's manufacturers remained stuck in recession in October as new orders fell.

He said that foreign trade had been rather weak throughout 2019 and added that the risks in overseas trade had declined but not disappeared. Despite the ongoing trade woes, German exports had a better-than-expected quarter. In the first nine months of the year, exports to the USA accounted for 9% of all German exports.

Friday's data showed imports climbed by 1.3 per cent in September.

The dispute between U.S. President Donald Trump and the Chinese leadership over China's trade surplus with the USA has dampened trade and industrial output by raising uncertainty about whether and where more tariffs, or import taxes, might be imposed.

German exports to the European Union member states came in at a value of Euro 68.4 billion, whereas it imported goods to the value of Euro 53.6 billion.

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