German Exports Increase the Most in Almost Three Years

German June sa trade surplus widened to EUR 11.0 bln from EUR 10.2 bln in May. Exports jumped 7.0% m/m, while imports rose 6.8% m/m. Orders data also suggest that demand for German goods is improving, especially from other Euro-Zone countries, which is encouraging. Accumulated data show a trade surplus of EUR 30.2 bln in Q2, up from EUR 24.5 bln in the first quarter of the year. This is nominal data, which is impacted by oil price developments, but data still point to a positive contribution from net exports to overall GDP, which supports expectations for an improvement in GDP growth in the second quarter of the year. The unadjusted trade balance was EUR 12.2, down from EUR 20.1 bln in May last year and versus EUR 9.5 bln in May. The current account surplus came in at EUR 13.3 bln down from EUR 19.5 bln a year ago and versus EUR 4.2 bln in the previous month.