Eurozone trade surplus surged notably in May on rising exports and weak imports to exceed expectations, a report from Eurostat showed Monday.
Due to an increase in exports and the continuing fall in imports, the trade surplus grew to EUR 6.9 billion from EUR 3.7 billion in April. Economists had expected the surplus to rise to EUR 4 billion.
A year ago, the balance of trade in goods was in a deficit of EUR 1.2 billion. In seasonally adjusted terms, the trade surplus was EUR 6.3 billion, bigger than April's EUR 4.5 billion surplus and consensus forecast of EUR 5 billion.
IHS Global Insight's economist Howard Archer said the trade surplus masks generally worrying trends. The improved surplus primarily occurred due to a fall in imports and the slight growth in exports does little to dilute concern that weakened global growth is hitting foreign demand for Eurozone goods.
On a seasonally adjusted monthly basis, Eurozone exports rose 0.3 percent, reversing April's 1.4 percent drop. Meanwhile, the downward trend in imports continues in May, which was down 0.9 percent.
Non-seasonally adjusted data showed that annual export growth remained steady at 6 percent, while imports remained flat in May.
The extra-EU27 trade in goods balance was a EUR 3.8 billion deficit, compared with EUR 14.5 billion shortfall in May.
In a separate communique, the statistical office confirmed 2.4 percent inflation in June, which was the lowest since February 2011.
by RTT Staff Writer
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