Weaker euro boosts European exports

European exports increased in December as a strengthening global economy and a weaker euro boosted demand for goods from the …

European exports increased in December as a strengthening global economy and a weaker euro
boosted demand for goods from the region.

Exports from the euro area rose a seasonally adjusted 3.1 per cent from November, when they remained unchanged, the European Union's statistics office in Luxembourg said today.

European construction output gained 0.5 per cent from November, when it fell 0.8 per cent, a separate report showed.

The euro's 7.5 per cent drop against the dollar in the past three months is helping to bolster shipments abroad by making European goods more competitive.

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Exports helped the euro-area economy emerge from its worst slump in more than six decades in the third quarter. Still, expansion in Europe's services and manufacturing industries slowed last month, suggesting the economy may struggle to gain momentum this year.

The trade surplus widened to €7 billion ($9.6 billion) from €5.3 billion in November, today's report showed.

Imports rose 1.7 per cent from November, when they increased 0.9 per cent.

For the full year, the euro region showed a trade surplus of €22.3 billion, compared with a trade deficit of €54.7 billion in 2008.

The European currency was little changed after today's data, trading at $1.3748 at 10:20 a.m. in London, down 0.2 per cent on the day.