German exports fall unexpectedly in October due to weak EU business

Imports also down

2023 December 4 . 9:21 AM

2 min read

German exports fall unexpectedly in October due to weak EU business

German exports surprisingly fell for the second month in a row in October due to the poor business in Europe. They fell by 0.2 percent on the previous month to 126.4 billion euros, according to the Federal Statistical Office.

Economists surveyed by the Reuters news agency, however, had expected an increase of 1.1 percent after a significant drop 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 primarily 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.

At least the mood in the German export industry improved in November for the second month in a row, which signals a 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-Industry's business survey. This is the highest value for six months. "However, the export economy is still unable to develop any momentum," said Klaus Wohlrabe, head of the Ifo surveys.

"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.