(Bloomberg) --
Germany posted its biggest trade surplus in four months as exports showed a surprise gain.
The foreign trade balance stood at 21.4 billion euros ($23.6 billion) in July, up from 16.6 billion euros the previous month, according to the Federal Statistics Office. Shipments abroad rose 0.7% from June, defying economist estimates for a decline.
The data provide some unexpected comfort for Europe's largest economy, which has suffered badly from indirect consequences of the U.S.-China trade war. Business confidence is at the weakest in more than six years, and industrial production unexpectedly dropped further in July.
“This morning's trade data brings a very weak ray of sunshine,” wrote Carsten Brzeski, chief economist at ING Germany in Frankfurt. But looking ahead, he highlighted risks including the potential for tit-for-tat tariffs between the U.S. and the EU, as well as future trends in the Chinese car market.
To contact the reporter on this story: Yuko Takeo in Tokyo at ytakeo2@bloomberg.net
To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Jana Randow, Brian Swint
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