German exports fall unexpectedly in October
The economic situation in the EU is not good and Germany's companies are once again feeling the effects: Made in Germany was once again less in demand. In contrast, sales to the USA and China grew. However, export expectations are brightening.
German exports surprisingly fell for the second month in a row in October due to the sluggish business in Europe. They fell by 0.2 percent compared to the previous month to 126.4 billion euros, according to the Federal Statistical Office. By contrast, economists had expected an increase of 1.1 percent after a significant fall of 2.5 percent in September. Imports unexpectedly fell for the fifth month in a row in October, by 1.2 percent to 108.6 billion euros.
The drop in exports is mainly due to the weakening business in Europe: Goods worth 67.9 billion euros were sold to EU member states, a decrease of 2.7 percent compared to the previous month. The USA remained the most important buyer of goods "Made in Germany". Business with the world's largest economy grew by 5.7 percent to 13.5 billion euros. Exports to China increased by 1.5 percent to 7.9 billion euros, while exports to the UK rose by 5.6 percent to 6.6 billion euros.
Stabilization in sight?
At least the mood in the German export industry improved in November for the second month in a row, which signals stabilization. The barometer for export expectations rose to minus 3.8 points, from minus 6.3 points in October, according to the Munich-based IFO Institute's business survey. This is the highest value in six months.
"However, the export economy is still unable to develop any momentum," said Klaus Wohlrabe, head of the IFO survey. "A greater share of the economic upturn in many countries has yet to materialize." The export-dependent industry is struggling with the sluggish global economy. Many central banks have raised their key interest rates sharply due to high inflation, making loans for investments in German export hits such as machinery, equipment or vehicles significantly more expensive and thus dampening demand.
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Despite the drop in German exports in October, export expectations are showing signs of improvement, climbing to their highest level in six months according to the Ifo Institute. This improvement in sentiment could potentially signify a stabilization period for the German export industry within the EU context.
Germany's exports to the EU, a significant portion of its total exports, saw a decrease of 2.7% in October, contributing to the overall decline. Despite this, Germany's exports to key markets such as the USA and China continued to grow, indicating resilience in certain sectors of German export industry even amidst challenging economic conditions within the EU.
Source: www.ntv.de
