Category Archives: euro area trade

17/5/16: Euro Area Exports of Goods Down in 1Q 2016

Euro area trade in goods data for 1Q 2016 is out today and the reading is poor.

On annual basis (not seasonally-adjusted figures), extra-EA19 exports of goods were down in 1Q 2016 to EUR485.8 billion from EUR492.0 billion a year ago, a decline of ca 1% y/y. Imports - sign of domestic demand and investment - dropped 3%. As the result, EA trade balance for goods trade only rose from EUR46.8 billion in 1Q 2015 to EUR53.9 billion in 1Q 2016.

Out of the original EA12 countries, Ireland was the only one posting an increase in extra-EA19 exports in 1Q 2016 compared to 1Q 2015 (+3%), while the largest decrease was recorded by Greece (-20%) and Portugal (-17%).

On a seasonally-adjusted basis (allowing for m/m comparatives), exports extra-EA19 fell from EUR167.3 billion in February 2016 to EUR165.1 billion in March 2016, reaching the lowest point in 12 months period. Due to an even sharper contraction in imports, trade balance (extra-EA19 basis) rose to EUR22.3 billion from EUR20.6 billion.

More details here: 

3/2/15: Global Trade Growth: More Compression, Whatever About Hope…

As I noted just a couple of days ago, global trade growth is falling off the cliff (see: And euro area's trade growth is leading to the downside:

So no surprise there that the Baltic Dry Index is tumbling. As noted by @moved_average, the index is now down 577 - the level below the crisis peak lows and consistent with those observed back in 1985-1986 lows.

Ugly gets uglier... but you won't spot this in PMIs...

As an aside, in the chart above, perhaps a telling bit is the lack of any positive uplift in euro area trade growth from the introduction of the euro.