German exports declined in June, adding to signs Europe's economy is losing momentum as the global recovery falters.
Exports, adjusted for work days and seasonal changes, fell 1.2 per cent from May, when they increased 4.4 per cent, the Federal Statistics Office said today.
Imports rose 0.3 percent from the previous month, when they advanced 3.8 per cent.
German growth is slowing as Europe's sovereign-debt crisis prompts governments from Spain to Ireland to cut spending, sapping demand for German goods. Industrial production unexpectedly decreased in June and business and investor confidence fell last month. At the same time, unemployment at a two-decade low is boosting household spending.
The economy will grow 3.1 per cent this year and 1.8 per cent in 2012 after expanding a record 3.6 per cent in 2010, the Frankfurt-based Bundesbank predicts.
From a year earlier, exports jumped 3.1 per cent, today's report showed. The trade balance narrowed to €12.7 billion from €14.8 billion in May. The surplus in the current account, a measure of all trade including services, was €11.9 billion, up from €6.7 billion.
Exports to the 27-member European Union rose 4.3 per cent to €54 billion in June from a year earlier, while sales to the euro region gained 4.7 per cent to €36.9 billion,
Sales to countries outside the EU increased 1.3 per cent to 3€4.3 billion from a year earlier.
Bloomberg