Euro Area Exports Rose Most in 20 Months in September


European exports increased the most in more than a year and a half in September as reviving global demand helped the region’s economy emerge from its deepest recession since World War II.

Exports from the 16-nation euro area rose a seasonally adjusted 5.5 percent from August, when they fell 4.1 percent, the European Union’s statistics office said. The September increase was the biggest since January 2008 and pushed the trade surplus to 6.8 billion euros ($10.2 billion), the largest in more than five years. Imports advanced 1.1 percent after a 1 percent drop in August.

The euro-area economy returned to growth in the third quarter after global governments stepped up stimulus measures and central banks injected billions into markets to revive lending. While Europe’s services and manufacturing industries expanded for a third month in October, the euro’s ascent is threatening to undermine exports by making them more expensive.

The euro’s 19 percent advance against the dollar since mid- February has prompted policy makers to urge China to shoulder some of that burden by allowing the yuan to appreciate. China has kept its currency steady against the dollar since July 2008 and ECB President Jean-Claude Trichet said on Nov. 5 that a stronger yuan would be welcome.”

Euro-area exports to the U.S., the region’s second-biggest trading partner, dropped 21 percent in the first eight months of 2009 from a year earlier, today’s report showed. Shipments to the U.K., the largest market for euro-area goods, declined 25 percent, while exports to China fell 2 percent. The detailed country data are published with a one-month lag.


TradingEconomics.com, Bloomberg
11/17/2009 9:26:29 AM