German exports rise again amid supply chain woes

Frankfurt

GERMAN exports rose in July for the 15th month in a row, according to data published on Thursday, despite shortages and supply frictions.

Exports from Europe's largest economy were up 0.5 per cent compared with the previous month, the federal statistics agency Destatis said, a figure equivalent to 115 billion euros (S$182.7 billion) of goods.

Imports were down by 3.8 per cent in July compared with the previous month, causing Germany's closely-watched trade surplus to climb slightly to 17.9 billion euros, in seasonally-adjusted terms.

Global supply chain issues and unresolved trade conflicts meant there were "dark clouds" on the economic horizon, powerful German industry lobby the BDI said.

Shortages of raw materials and key components, such as semiconductors and plastics, have held back German industrial output, the group said.

The German car industry, an export leader, has been particularly negatively affected, with Volkswagen amongst the companies curbing production while waiting for supplies.

Industrial orders reached a historic high in July, while output also grew after three consecutive months of falls.

Full order books are, however, "no guarantee of future export success" and do not "automatically" lead to continuing growth, the BDI noted.

German exports exceeded pre-crisis levels for the first time in June this year, after plunging at the start of the pandemic.

Exports to EU member states rose 17.7 per cent in July compared with the previous year, while exports to other countries was up 6.8 per cent.

In China, a key market for German exports, values shrank by 4.3 per cent compared with the previous year. AFP