German exports and imports hit record highs in value terms in July, new figures show today.
This would suggest that foreign appetite for goods from Europe's largest economy remains robust despite a slowdown in China, while domestic demand is also holding up well.
Seasonally adjusted exports climbed by 2.4% on the month to €103.4 billion while imports grew 2.2% to €80.6 billion.
Those were the highest values since records began in 1991, Federal Statistics Office data showed today.
Both figures were far stronger than forecast. Economists polled by Reuters had been expecting shipments abroad to rise by 0.7% and imports to increase by 0.5%.
But economists warned that caution was warranted. They said that while the start of the second half of the year looked excellent, there were a lot of question marks over the future.
In August the turbulence in many emerging market currencies and on the Chinese stock markets started.
German exports will not continue to grow at this pace as a result, the added.
An unadjusted breakdown showed shipments to countries within the euro zone increased by 5.5% in July compared with a year ago while exports to countries within the European Union that do not use the euro climbed by 6.9%.
Demand for German goods beyond the EU rose by 6.4%.
Economist said that strong trade with the US, Britain and the whole euro zone was more than offsetting weakness in emerging markets and China. Foreign trade and domestic demand would likely provide impetus in the third quarter.
German growth slowed in early 2015 but picked up slightly to 0.4% in the second quarter thanks to foreign trade, which has traditionally propelled the economy, although private consumption has been the key growth driver in the last two years.
Nonetheless, China is a risk for Germany, which has the greatest exposure to the Asian nation of all EU members. The Ifo institute has warned that exports may falter later this year if China's slowdown hits the economy.
But the BGA trade association has said Germany will set another export record this year despite recent worries about China, while Daimler said last week that deliveries of its Mercedes-Benz to China climbed 53% in August.