Eurozone Exports Rose in August, Easing Brexit Fears

The eurozone's trade surplus with the rest of the world widened during August for the first time since April, a fresh sign that the U.K.'s decision to leave the European Union has had little immediate impact on growth across the continent.

Policy makers had feared that the shock inspired by Britain's unprecedented decision would cause consumers and businesses to delay spending, and that exports to the eurozone's second-largest overseas market would be hit by the sharp depreciation of the pound against the euro.

But the European Union's statistics agency on Friday said that on a seasonally adjusted basis, exports of goods from the currency area rose by 2.3% from July, more than reversing a fall in that month, while imports rose by 0.9%, leading to an increase in the trade surplus to €23.3 billion ($25.7 billion) from €20.8 billion in July. Without the seasonal adjustment, the surplus widened to €18.4 billion from €11.2 billion a year earlier.

A widening of the trade surplus was the main driver of economic growth for the eurozone during the three months to June, as spending by households and businesses slowed. Overall, economic growth edged down to 0.3% from 0.5% in the first quarter.

The widening of the surplus in August after a narrowing in July is consistent with other indications that growth continued at the same modest pace in the third quarter, and follows figures released Wednesday that showed a pickup in industrial production during the month.

However, policy makers have warned that it is too early to conclude the Brexit vote won't have any impact on the eurozone's recovery. Currency movements can take many months to affect flows of exports and imports, while there have been some recent signs that the prices paid by U.K. consumers are on the rise.

Consumer-products giant Unilever PLC is raising its U.K. prices for everything from mayonnaise to shampoo, citing rising commodity costs in dollars, which coupled with the sharp decline in the pound have raised the cost of imported ingredients.

Write to Paul Hannon at [e-mail]

(END) Dow Jones Newswires

October 14, 2016 05:55 ET (09:55 GMT)

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