By Ed Frankl
Germany’s trade surplus fell unexpectedly on month in May, as exports declined marginally and imports rose, a sign that domestic demand could be improving despite a global economic slowdown, as the country’s economy tries to shake off the recession it suffered in the winter.
The country’s adjusted trade surplus–the balance of exports and imports of goods–dipped to 14.4 billion euros ($15.72 billion) in May, compared with a revised EUR16.5 billion in April, data from the country’s statistics office Destatis showed Tuesday.
In May, exports ticked down 0.1% on month on a calendar and seasonally adjusted basis to EUR130.5 billion, suggesting global demand for German manufacturing goods receded somewhat.
Economists polled by The Wall Street Journal expected the trade balance at EUR17.6 billion and exports to rise by 0.5%.
However, imports increased 1.7% to EUR116.1 billion, a sign that domestic demand could be growing. Domestic consumption slumped in Germany over the winter as the economy suffered a recession, contracting by 0.5% in the fourth quarter of 2022 and 0.3% in the first of this year.
Outside the European Union, the country receiving the most German exports in May was the U.S., though exports there declined by 3.6% on month, Destatis said. Exports to China increased 1.6%, while they rose by 5.8% to the U.K., it added.
Write to Ed Frankl at edward.frankl@wsj.com