Germany's exports expanded more than expected in September, while imports dropped marginally, data from Destatis revealed on Monday.
Exports increased 2.3 percent month-on-month, faster than the economists' forecast of 2 percent but slower than the 2.9 percent growth logged in August.
Meanwhile, imports dropped 0.1 percent, confounding expectations for an increase of 2.1 percent. Imports were up 5.8 percent in August.
As a result, the trade surplus advanced to a seasonally adjusted EUR 17.8 billion from EUR 15.4 billion posted in August. The expected surplus was EUR 15.8 billion.
On a yearly basis, exports decreased at a slower pace of 3.8 percent, following a 10.2 percent drop seen in August. Likewise, imports were down 4.3 percent versus a 6.8 percent fall in the prior month.
The trade surplus totaled an unadjusted EUR 20.8 billion, which was smaller the EUR 21.2 billion surplus posted in September 2019.
The current account of the balance of payments showed a surplus of EUR 26.3 billion compared to EUR 23.5 billion in the same period last year.
Exports to China increased by 10.6 percent from last year, while shipments to the United States, which have been hit particularly hard by the coronavirus pandemic, dropped by 5.8 percent.
Exports to the United Kingdom showed an annual decrease of 12.4 percent.
In September, most imports came to Germany from China. Goods to the value of EUR 9.7 billion were imported from there, which means that imports from China were up 3.0 percent from September 2019.
Imports from the United States also rose by 3.0 percent but imports from the United Kingdom fell 14.7 percent.
Looking ahead, exports (and industrial production) could still prevent the economy from falling into a second lockdown depression in the final quarter of the year, Carsten Brzeski, an ING economist said.
Even if the longer-term outlook has improved somewhat, the German export sector will not return to its old strength easily, the economist added.
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