German exports rise more than expected in September

German exports surged more than anticipated in September, driven by robust demand from neighboring European nations, according to official figures released on Monday. The Commerce Ministry reported a 2% rise from the previous month, reaching €141.1 billion ($158 billion), exceeding analysts' expectations of a 0.5% increase. This marked a rebound from two consecutive months of declining exports, signaling a potential turnaround for the country's manufacturing sector, which has languished in stagnation for an extended period.

The surge in exports to EU countries, up 3.5%, was the primary catalyst behind the improvement, as shipments to China declined by over 5%, reflecting intensifying competition from German firms in various industries such as automotive and chemicals. The US, Germany's largest export market, saw a modest 0.5% drop in shipments. While the trade surplus narrowed to €15.6 billion in September, driven by a 4.2% increase in imports, economists anticipate that Germany's economy will expand at its fastest rate in several years in 2026, propelled by increased government spending on defense and infrastructure.