German exports unexpectedly fall in November

GERMAN exports unexpectedly fell in November as high inflation and market uncertainty continue to weigh on Europe’s largest economy, despite fading supply chain problems.

Exports fell by 0.3 per cent on the month, data from the federal statistics office showed on Thursday (Jan 5). Analysts polled by Reuters had predicted 0.2 per cent growth.

November’s drop comes after October’s figures were revised up, to growth of 0.8 per cent from an initially reported 0.6 per cent fall.

There was also a bigger-than-expected drop of 3.3 per cent for imports in November, compared with consensus for a 0.5 per cent decline.

Shipments to Germany’s top export partner, the United States, were down 1.5 per cent on the month in November, while exports to European Union member states fell by 0.4 per cent.

“As China and the US are weakening, export momentum will remain subdued for the time being,” said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe private bank.

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He added that the fact that there were fewer material bottlenecks provided some cause for optimism. “The export sector supports the prospect of a mild recession.”

A survey published on Monday showed that the downturn in Germany’s manufacturing sector had eased somewhat in December due to the improved availability of materials, though weaker demand continues to affect manufacturers.

The Ifo economic institute found that the number of manufacturing sector companies reporting problems with material shortages fell for the third month in a row in December. REUTERS