German Exports Decline, as Euro, Oil Sap Spending

German exports unexpectedly declined in November as a stronger euro and higher oil prices damped demand.

Sales abroad, adjusted for working days and seasonal changes, fell 0.5 percent from October, when they rose 0.5 percent, the Federal Statistics Office in Wiesbaden said today. Economists expected a gain of 0.5 percent, according to the median of nine forecasts in a Bloomberg News survey.
The German economy, Europe’s largest, has powered growth in the euro region as companies stepped up spending and hiring to meet foreign orders. While exports have benefited from booming Asian economies, rising oil prices are denting customers’ spending power just as the euro’s gains against the dollar erode companies’ competitiveness by making goods more expensive abroad.

“Exports are clearly suffering from the strong euro,” said David Kohl, deputy chief economist at Julius Baer Holding AG in Frankfurt. “Things are getting more and more difficult, but I don’t see a slump. Asian demand is still rather healthy overall.”

Bloomberg