German exports dip in July as EU demand weakens

German exports unexpectedly declined in July, ending a five-month stretch of consecutive monthly gains. Data released by the federal statistics office on Tuesday showed shipments fell by 0.8% compared with the previous month, against economists' average forecast of a 0.1% uptick.

The dip was driven largely by weaker demand within the European Union, where exports dropped by 1.6% on the month. Shipments to non-EU countries, however, edged up by 0.2%. Notably, exports to the United States surged by 19.1% despite ongoing trade tensions.

Imports fell at a sharper pace of 5.7% month-on-month. The faster decline in imports relative to exports widened Germany's trade surplus to €21.3 billion in July, up from €15.4 billion in June.

The export figures come after Germany's economy expanded by 0.3% in the second quarter, buoyed by foreign demand. Several economic institutes have recently revised their growth forecasts upward, though the latest trade data suggests some softening in external demand, particularly from within the bloc.