German exports fall in August on sharp U.S. decline

German exports contracted 0.8% in August compared to July, according to figures released by the nation's federal statistics office on Thursday. The unexpected drop caught economists off guard, as they had predicted a 0.6% uptick in exports for the month. Imports, on the other hand, increased by 0.9% on a calendar and seasonally adjusted basis compared to the previous month.

The trade surplus for August narrowed to €19.5 billion, down from €21.6 billion in July. Exports to European Union countries declined by 0.6% during the month, while exports to non-EU nations decreased by 1.1%. The decline was primarily attributed to a substantial 6.3% drop in exports to the United States compared to the previous month.

On a positive note, exports to the United Kingdom surged 16.7% during the same period. Exports to China also rose by 4.7% in August, while imports from China increased by 11%.