By Paul Hannon
The eurozone's surplus in its trade with the rest of the world rebounded in November as exports jumped, pointing to a pickup in economic growth toward the end of what has been another disappointing year for the currency area.
The European Union's statistics agency said Monday that eurozone exports exceeded imports by 25.9 billion euros ($27.6 billion) in November, up from EUR22.9 billion in the same month of 2015. Seasonally adjusted figures showed that exports rose 3.3% from October, while imports were up 1.8%, leading to a widening of the surplus to EUR22.7 billion from EUR19.9 billion in October.
The pickup in exports is consistent with other indications that economic growth accelerated in the fourth quarter compared with the three monthsto September, including figures for industrial production issued last week and business surveys that point to a revival in the manufacturing sector.
The pickup in exports came despite a strengthening of the euro against the British pound that makes goods manufactured in the eurozone more expensive for U.K. customers. However, the pound has weakened again over recent days, and that may yet take a toll on eurozone sales to one of its biggest overseas markets.
Still, eurozone exports are likely to be boosted over coming months by a strengthening of the U.S. dollar in the wake of Donald Trump's victory in November's presidential elections, as well as the anticipation of more rate increases by the U.S. Federal Reserve in 2017.
The eurozone economy slowed in the three months to June, and grew at the same, weak pace in the third quarter. A pickup in the final quarter would mean that the eurozone economy grew around the same, modest pace in 2016 as in 2015.
Write to Paul Hannon at firstname.lastname@example.org
(END) Dow Jones Newswires
January 16, 2017 05:14 ET (10:14 GMT)
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