RTTNews - The Euro area trade surplus reached the highest level in two years in June despite weak global demand.
The Eurostat report showed that the euro area trade balance showed a surplus of EUR 4.6 billion in June, larger than the revised EUR 2.1 billion surplus recorded in May. This was the largest since June 2007, when the surplus totaled EUR 6.7 billion. On a yearly basis, exports declined 22% to EUR 106.1 billion and imports dropped 26% to EUR 101.5 billion.
On a seasonally adjusted basis, the trade surplus fell to EUR 1 billion in June from an upwardly revised EUR 1.1 billion in the previous month. The trade balance logged a surplus for the third straight month. According to the initial report released on July 17, the surplus was EUR 800 million for May.
Exports dropped 0.1% on a monthly basis, following May's 1.8% decrease. Meanwhile, imports stayed flat compared to a 2.5% fall in May.
The report gave a detailed account for January to May period. EA16 exports to main trading partners, the U.K. and U.S., plunged 27% and 21%, respectively. Shipments to China dropped 6%. The trade surplus with the U.K. stood at EUR 19.8 billion and that with the U.S. amounted to EUR 9.7 billion. At the same time, the deficit with China came in at EUR 38.7 billion.
The report showed that the extra-EU27 trade deficit on a seasonally adjusted basis decreased to EUR 7.7 billion from EUR 8.8 billion in May as imports declined more than exports. Exports slipped 0.3% and imports were down 1.4%.
During January to May, the EU27 energy deficit amounted to EUR 92.9 billion compared with EUR 147.9 billion deficit reported during the same period of last year. Meanwhile, the surplus for machinery and vehicles slid to EUR 36.3 billion from EUR 59.8 billion.
Concerning the total trade of member states, the largest surplus was reported in Germany, followed by Ireland and the Netherlands. By contrast, the U.K. recorded the biggest deficit of EUR 38 billion, followed by France with EUR 24.4 billion and Spain with EUR 20.7 billion deficits.
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