German exports surge despite euro

The value of exports went up a seasonally-adjusted 0.6% to 83.5bn euros compared to September, supporting growth in Europe's biggest economy

Imports rose 0.2% to 65.4bn euros, much slower than expected by analysts, according to preliminary official data.

At the same time, September's surplus was revised down to 17.8bn euros.

Strong demand

Sebastian Wanke, an economist at DekaBank, said he believed the stronger euro would start to influence German exporters by the middle of the next year.

"It looks as though exports could again deliver a positive growth contribution in the forth quarter"
Sebastian Wanke, DekaBank

"At the moment, the consequences of the strong euro are suspended somewhat by the strong demand from other euro zone countries and the EU states," he said.

Eurozone states remained Germany's main trading partners in October with more than 40% of exports going to other euro members.

"It looks as though exports could again deliver a positive growth contribution in the fourth quarter," Mr Wanke added.

Meanwhile, France's industrial output went up 2.1% in October on a monthly basis, the largest rise since May 2006.

This compared to a 1.2% fall in September.

"It is rather a good surprise," Jean-Louis Mourier, an economist at Aurel Leven, said of the figures. "The automotive sector is driving it but all sectors are rising."

But Mr Mourier said the swings of recent months indicated that output figures were "very erratic".

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Federal Statistics Office of Germany
French National Institute of Statistics
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