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China trade weak but Germany powers on

Monday, May 09, 2016 - 01:29

German industrial orders rose more than expected in March due to buoyant foreign demand especially from countries outside the euro zone. But as Sonia Legg reports, the postive data from Europe's biggest economy follows yet another weak survey from China - this time exports fell more than expected in April.

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It keeps disappointing and China's latest economic data was no exception. Exports and imports fell more than expected in April, thanks to weak demand at home and abroad. It's now 18 months since China's imports last saw a rise. (SOUNDBITE) (English) LONDON CAPITAL GROUP, HEAD ANALYST, BRENDA KELLY, SAYING: "Chinese data has become notably softer of late. It is worrisome for the broader markets but I do sense this is because they want it to move this way and if they are moving and diversifying then we are going to see causalities along the way." There were fears China's slowdown would hit Germany hard. But it seems the Made in Germany brand is made of stronger stuff. Industrial orders in March were buoyed by foreign demand, especially from countries outside the euro zone. (SOUNDBITE) (English) LONDON CAPITAL GROUP, HEAD ANALYST, BRENDA KELLY, SAYING: "It is decent news for Germany and ultimately exports there are going to continue to grow particularly if we start to see the weakness in the euro start to manifest itself on the back of what the ECB is trying to do." But Germany's still getting some stick from abroad. The IMF says it needs to spend more on public and private infrastructure to reduce its large current account surplus. (SOUNDBITE) (English) LONDON CAPITAL GROUP, HEAD ANALYST, BRENDA KELLY, SAYING: "It has improved and it has helped boost economic demand but it needs to do more and the IMF is urging them to do something similar.." Germany is benefitting from the ECB's loose monetary policy. But its neighbours aren't doing as well as the central bank would like - sentiment across the euro zone in May didn't improve as much as hoped.

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China trade weak but Germany powers on

Monday, May 09, 2016 - 01:29