German Trade Surplus Widens as Exports Unexpectedly Increase

(Bloomberg) --

Germany posted its biggest trade surplus in four months as exports showed a surprise gain.

The foreign trade balance stood at 21.4 billion euros ($23.6 billion) in July, up from 16.6 billion euros the previous month, according to the Federal Statistics Office. Shipments abroad rose 0.7% from June, defying economist estimates for a decline.

The data provide some unexpected comfort for Europe’s largest economy, which has suffered badly from indirect consequences of the U.S.-China trade war. Business confidence is at the weakest in more than six years, and industrial production unexpectedly dropped further in July.

“This morning’s trade data brings a very weak ray of sunshine,” wrote Carsten Brzeski, chief economist at ING Germany in Frankfurt. But looking ahead, he highlighted risks including the potential for tit-for-tat tariffs between the U.S. and the EU, as well as future trends in the Chinese car market.

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