German Exports Surge Amid U.S. Tariff Concerns

In February, German exports surpassed expectations due to increased U.S. demand anticipating tariffs, despite a decline in industrial production. Exports rose 1.8%, creating a trade surplus of 17.7 billion euros. Industrial production fell 1.3%, highlighting ongoing manufacturing struggles in Europe's largest economy.

German exports experienced a surprising increase in February, driven by heightened demand from the United States as businesses geared up for impending tariffs under the Trump administration. The federal statistics office reported a 1.8% boost in exports, exceeding forecast estimates of 1.5%.

Despite this export growth, German industrial production fell by a steeper-than-expected 1.3% during the same period. Analysts had anticipated a lighter decline of 0.8%. Additionally, industrial orders remained stagnant, further evidencing a sluggish manufacturing sector.

The trade balance revealed a surplus of 17.7 billion euros, with significant contributions from exports to the United States, up by 8.5%. However, this surplus still falls short of the 22.6 billion euros recorded the previous year, raising concerns for Europe's economic powerhouse.

(With inputs from agencies.)