Eurozone Exports Rise For Second Month In July

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Eurozone exports rose for the second month in July, as the economy shows signs of recovery, official data indicated Thursday.

The seasonally adjusted exports rose 4.1% month-on-month in July after rising 0.9% in June, the Eurostat said. But, imports fell 0.3% in July following an increase of 0.2% in the previous month, suggesting fragile domestic demand.

The trade balance showed a surplus for the fourth straight month. In July, the surplus ballooned to EUR 6.8 billion from EUR 2.3 billion in June.

The rise in exports and a relatively small decline in imports compared with previous months provide further evidence that the 16-nation economy is emerging from the recession.

The European Commission expects the Eurozone to grow 0.2% sequentially in the third quarter and 0.1% in the final three months of the year. For the full year, gross domestic product is forecast to fall 4%.

The Eurozone economy contracted 0.1% sequentially in the second quarter, following a record 2.5% fall in the first three months of the year. GDP continued the stretch of decline that began in the second quarter of 2008.

On a not seasonally adjusted basis, exports dropped 19% year-on-year to EUR 115.3 billion after declining 22% in June. Imports fell 30% to EUR 102.7 billion, worse than the 26% slump in the previous month.

The unadjusted trade balance showed a surplus of EUR 12.6 billion, up from June's revised surplus of EUR 5.4 billion. Trade balance has been in surplus since March 2009. A year ago, Eurozone had recorded a trade deficit of EUR 3.5 billion.

Exports to the UK, a major trading partner, fell 27% year-on-year during January to June and that to the U.S. were down 21%. Exports to Russia fell the most, down 38%.

In the EU27, seasonally adjusted exports dropped 3.3% on a monthly basis in July following an increase of 1.2% in June. Imports fell 0.6% versus an increase of 0.1% in June. The trade balance continued to be in deficit, with the July shortfall at EUR 4 billion, down from EUR 7.6 billion in June.

The not seasonally adjusted exports from EU27 decreased 18% year-on-year and imports plunged 31%, resulting in a surplus of EUR 0.7 billion. In June, the balance was a EUR 4.6 billion deficit.

Eurozone exports rose for the second month in July, as the economy shows signs of recovery, official data indicated Thursday. (Market News Provided by RTTNews)