Intermoney | Eurozone trade balance figures for August disappointed as the trade surplus narrowed quite a bit, to €11bn (vs. an estimated €17.6bn). At the same time, July’s data was revised down to a surplus of €13.7 billion. The euro area’s surplus in trade in goods with the rest of the world also narrowed, mainly due to lower exports of machinery and vehicles. Trade tensions were more than evident with exports to China declining by 11% year-on-year, also suffering from sluggish domestic activity. While recent stimulus from the Chinese government could spur a rebound in activity, the recently passed tariffs do not do any favours to increase our sales to China. Along with international trade tensions stemming from protectionist policies, another risk to trade in the coming months are geopolitical concerns, recently exacerbated by rising tensions in the Middle East.
Eurozone August trade balance disappoints: surplus falls sharply to €11.0 billion from €17.6 billion
