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September exports from Germany disappointing

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German exports dropped once again, confirming that the economy’s only growth areas in the third quarter were domestic consumption and government expenditure. In September, German exports decreased by 0.7% month-on-month, from -1.2% in August.

Imports increased by 0.1% MoM, from 2.1% MoM in August. Supply chain difficulties have begun to affect German exports over the summer. Exports were an imporant growth driver in the second quarter but look like a drag on growth in the third quarter.

During the first eight months of the year, the US has been the single most important export destination for German exports, accounting for almost 9% of all exports. China comes in as number two but only marginally ahead of France.