German exports 'hit by cold weather'

Germany endured the worst weather in two decades in January

German exports fell unexpectedly in January, with the cold weather that month being seen as the main cause.

Exports in the first month of the year declined 6.3% on a seasonally adjusted basis, compared with December.

This was the first monthly decline since August of last year, and the biggest since January 2009.

While the Federal Statistics Office gave no reason for the fall, economists pointed to the heavy snow in January. Imports for the month increased by 6%.

As a result, Germany's trade surplus narrowed to 8.7bn euros ($11.8bn; £7.9bn).

'Too early'

Commerzbank economist Simon Junker said the export number was "a disaster".

"Nevertheless, we are still of the opinion that the first half [of 2010] will be strong, although perhaps not necessarily the first quarter," he added.

"We assume that exports will resume growing in the next few months."

Citigroup economist Juergen Michels said: "The question is whether the cold weather distorted the results."

"It's therefore still too early to say that exports aren't performing," he added.

The most recent GDP figures showed that the German economy failed to grow in the last quarter of 2009.

The country endured the worst weather in two decades during January this year.