- Johannes Gareis, economist at Natixis
The outlook for the European powerhouse Germany brightened as official data showed the country's trade surplus widened to a new record in July on the back of robust export growth. According to the Federal Statistical Office, on an annualized basis exports surged 8.5% in July, with outbound shipping reaching more than 100 billion euros in goods and services, as demand from its European neighbours improved, marking the highest-ever figure for a single month. Nearly 60 billion euros' worth of goods and services were delivered to other European countries, with the automotive sector contributing a large share. Germany's trade surplus set a new record as well, reaching 23.4 billion euros. It is believed that later start date for summer holidays this year may have contributed to the record figures. Germany imported 50.4 billion euros in goods from the EU and 27.2 billion euros' worth from non-EU countries. The positive export numbers came on the heels of discouraging GDP numbers last week. Growth in Europe's biggest economy declined by 0.2% in the second quarter, compared to the previous three-month period.
Meanwhile, investor confidence in the Euro bloc for September declined to the lowest level in 14 months, underlining concerns over the outlook for the region's economy. Sentix' index tracking morale among investors dropped to -9.8 in September, the weakest level since July 2013, from 2.7 in August.
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