German exports plunge but factory output up

FRANKFURT, Aug 07 (AFP): German exports unexpectedly registered a sharp drop in June but industrial production rose, official data showed Wednesday, as Europe's biggest economy struggles to emerge from a weak period.
Exports dropped 3.4 per cent from the previous month and stood at 127.7 billion euros ($139.3 billion), federal statistics agency Destatis said in a statement.
It was the second straight monthly drop and far worse than a forecast from analysts surveyed by FactSet, who had predicted an increase of 1.3 per cent.
Exports to the European Union were down 3.4 per cent compared to the previous month while beyond the bloc they were down by 3.5 per cent.
The United States was still the biggest importer of "made in Germany" goods, although exports to the world's biggest economy fell 7.7 per cent.
Germany imported 107.3 billion euros worth of products in June, a slight increase on the previous month, with its trade surplus coming in at 20.4 billion euros.
On a more positive note, factory output rose 1.4 per cent in June compared to the previous month, according to Destatis.
That represented a turnaround from a sharp drop in May and was slightly better than a forecast by analysts surveyed by FactSet.
The rise was driven by improvements in the auto industry and the manufacture of electrical equipment.
Weakness in the crucial manufacturing sector has been blamed in part for a broader slowdown in the German economy, and the economy ministry cautioned the latest data do not indicate the problems are over yet.