BERLINGerman exports and imports bounced back in September after plunging in the prior month but failed to allay concerns that a slowdown in emerging markets will leave its mark on Europe’s largest economy.
The Federal Statistics Office reported on Monday that exports pushed up 2.6 percent in September and that imports rebounded by 3.6 percent. In August exports had plummeted 5.2 percent and imports slumped 3.2 percent, in part due to seasonal effects.
The data nudged the trade surplus for September down to 19.4 billion euros, reinforcing expectations that growth will slow slightly when third quarter gross domestic product (GDP) data is published on Friday.
“Global trade is stalling because of the weakness of many emerging markets, from Brazil to Russia and China. The German economy is feeling this,” said Rainer Sartoris of HSBC Trinkaus.
Strong demand from the United States and a modest recovery in the euro zone has helped cushion the blow to trade. And robust private consumption, supported by strong wage gains and low unemployment, is also bolstering the German economy.
Late last month, the closely-watched Ifo business climate index showed German firms remain confident about the outlook, despite weakness is some key trading partners and the diesel emissions scandal swirling around carmaker Volkswagen (VOWG_p.DE).
Economists polled by Reuters expect that German growth slowed to 0.3 percent in the third quarter from 0.4 percent in the second.
(Writing by Noah Barkin– Editing by Paul Carrel)
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