German Exports fell 5.2% in August

Data from Germany’s Federal Statistics Office, Destatis, showed seasonally-adjusted exports dropping by 5.2 percent to 88 billion euros ($99 billion), compared to that in July.

Despite the large month-to-month drop, Germany exported goods to the value of €88 billion and imported goods to the value of €72.8 billion euros in August 2015, recording once again a big trade surplus.

“While order data in August were overall disappointing, it’s too early to fall into a panic about the economy because orders from within the country and the currency union amid all the volatility still point upward”, said Stefan Kipar, an economist at Bayerische Landesbank in Munich.

But the recent slowdown in the Chinese economy has caused a few understandable concern – economists are increasingly doubtful as to whether the world’s second-biggest economy can reach its own growth targets in the years ahead.

Report says Germany’s official forecast for asylum seeker arrivals stands at 800,000 for this year, but that citing confidential government figures, the count could hit 1.5 million.

German imports also fell sharply in the latest sign that Europe’s largest economy lost momentum in the third quarter.

But industrial orders fell 1.8 percent in August, pointing to waning demand from overseas, especially China and other emerging markets. By comparison, the current account surplus in August past year was EUR11.1 billion.

Imports grew at a slower pace of 4 percent after expanding 6.2 percent.

“The unfavourable configuration of vacation days has significantly contributed to the decline in production”, the German Economy Ministry said in a statement. That was well below economists’ forecasts of a €16.2 billion surplus.

“Domestic demand in Germany is growing strongly, such that a lower growth contribution from net trade will be offset by stronger domestic spending”.