Germany’s exports unexpectedly drops in August

Germany’s exports dropped for the first time in 15 months in August. The decline was mainly owed to the supply chain-driven inflationary pressures hurting exporters.  

Seasonally adjusted exports from Germany shed a month-on-month 1.2% to 113 billion euros ($130 billion). The reading did not meet economists’ expectations of a 0.5% increase.

German industrial orders decreased more than expected in August. This reflected lower foreign demand after two months of exceptionally strong growth due to big contracts.

Several industries, including Germany’s automobile industry, continue to grapple with shortages of intermediate products such as semiconductors and other raw materials.

Meanwhile, the Statistics Office highlighted imports’ increase of 3.5% to 100.1 billion euros, double the growth expected by economists.

Trade was stronger compared with the previous year as exports to the United States and China increased 22.4% and 4.4%, respectively.

The German Chambers of Commerce recently raised its export forecast to 8% in 2021.