German exports take surprise hit in January

German exports unexpectedly fell 1 percent in January, data showed on Thursday, in a slight setback for the key sector of Europe's largest economy. The trade surplus fell to 11.8 billion euros from a revised 14.2 billion the month before, seasonally adjusted data from the Federal Statistics Office showed. Economists remained upbeat, although they had forecast a surplus of 13.2 billion euros and had expected exports to rise 0.7 percent.
"Despite today's drop, exports should remain a reliable source for growth," said Carsten Brzeski from ING. "Demand from other eurozone countries is stronger than expected, despite fiscal austerity, and the strengthening US economy should also bring a welcome boost to German exports." Germany has recovered faster than expected from a recession in 2009 that was its deepest since World War Two, and by the fourth quarter of last year it was growing 4 percent year-on-year.